X

Welcome to
V.I.P. System Overview
The V.I.P. System Overview has been updated. This manual contains a high-level, general
overview of the VisaNet Integrated Payment (V.I.P.) System and its components, les,
processes, and services. The manual describes VisaNet (Visa’s transaction processing network)
and illustrates how the V.I.P. System ts into the network.

The V.I.P. System Overview contains updated service descriptions for services available through
the V.I.P. System.

This book is part of the suite of V.I.P. System documents. V.I.P. System Overview is designed
to be a companion to V.I.P. System Services, Volume 1 and Volume 2, which has also been
updated. The V.I.P. System Overview and V.I.P. System Services incorporate all of the system
changes and revisions described in the VisaNet Business Enhancements technical letters
published after October 2004 through April 2005. Refer to About This Manual for a complete
list of information sources used to prepare this V.I.P. System Overview manual. It directs
readers to sources for more detailed information.

The Visa *Condential* label indicates that the information in this document is intended for
use by Visa employees, member banks, and external business partners that have signed a
Nondisclosure Agreement (NDA) with Visa. This information is not for public release.

Please send questions or comments to [email protected].

Effective: 1 June 2005

© Visa International 2000, 2002, 2003, 2004, 2005 Visa *Condential* 0851–06
 THIS PAGE INTENTIONALLY LEFT BLANK.

© Visa International 2000, 2002, 2003, 2004, 2005 Visa *Condential* 0851–06
 X

V.I.P. System Overview

V.I.P. SYSTEM
Effective: 1 June 2005

© Visa International 2000, 2002, 2003, 2004, 2005 Visa *Condential* 0851–06
 THIS PAGE INTENTIONALLY LEFT BLANK.

© Visa International 2000, 2002, 2003, 2004, 2005 Visa *Condential* 0851–06
 X Contents

About This Manual. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .1

Audience. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .1
Organization of This Manual. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .1
Document Conventions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .2
V.I.P. System Documentation Descriptions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .2
Sources of V.I.P. Information. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .5
Obtaining Report Samples. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .6
For More Information. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .6

Contents
CHAPTER 1 V.I.P. SYSTEM BASICS
1.1 VisaNet Overview. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .1-1
1.2 Visa Products. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .1-2
1.3 VisaNet Components. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .1-3
1.4 VisaNet Systems. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .1-5
1.4.1 VisaNet Integrated Payment (V.I.P.) System. . . . . . . . . . . . . . . . . . . . . . . . .1-5
1.4.1.1 BASE I System. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .1-6
1.4.1.2 Single Message System (SMS). . . . . . . . . . . . . . . . . . . .1-6
1.4.2 BASE II System. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .1-7
1.4.3 VisaNet Distributed Processing System (VDPS). . . . . . . . . . . . . . . . . . . . .1-8
1.4.4 The Common Member Interface (CMI) and Other Access Methods . 1-9
1.4.5 VisaNet Settlement Service (VSS). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .1-10
1.4.6 V.I.P. Processing Parameters. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .1-11
1.4.7 V.I.P. Messages. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .1-12

CHAPTER 2 V.I.P. TRANSACTION PROCESSING

2.1 Transaction Flow. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .2-1
2.2 V.I.P. Message Processing. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .2-2
2.3 Message Validation and Preparation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .2-2
2.3.1 Message Formats. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .2-3
2.3.2 V.I.P. Message Structure. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .2-3
2.3.3 Message Matching. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .2-4
2.4 Message Routing Basics. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .2-4
2.4.1 Routing Messages. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .2-4
2.4.1.1 Routing Tables. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .2-4
2.4.1.2 Internal Routing Services. . . . . . . . . . . . . . . . . . . . . . . . . .2-5
2.4.1.3 Gateways to Non-VisaNet Destinations. . . . . . . . . . . .2-6
2.5 Stand-In Processing (STIP). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .2-6
2.5.1 BASE I STIP. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .2-7
2.5.2 SMS STIP. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .2-7

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2.6 Response Processing. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .2-8

2.7 Logging. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .2-8
2.8 Additional V.I.P. Functions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .2-8
2.8.1 Managing the Network. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .2-9
2.8.2 Managing System Tables. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .2-9
2.8.3 Managing System Databases. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .2-9
2.8.3.1 Cardholder Database Files. . . . . . . . . . . . . . . . . . . . . . .2-10
2.8.3.2 Merchant Central File. . . . . . . . . . . . . . . . . . . . . . . . . . . .2-11
2.8.4 Reporting. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .2-11
2.8.4.1 BASE I Reports. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .2-12
2.8.4.2 Settlement Reports. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .2-12
2.8.4.3 Raw Data Records. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .2-12
2.8.5 Billing. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .2-12
Contents

CHAPTER 3 V.I.P. SYSTEM SERVICES

3.1 Service Functional Groups. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .3-1
3.2 Routing Service Denitions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .3-3
3.2.1 ATM/POS Split Routing Service. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .3-3
3.2.2 Check Acceptance Service. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .3-3
3.2.3 Gateway Services. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .3-3
3.2.4 Integrated Debit Service. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .3-3
3.2.5 PIN/No-PIN Split Routing Service. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .3-4
3.2.6 Priority Routing Service. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .3-4
3.2.7 Visa Shortest Online Path (VSOP) Service. . . . . . . . . . . . . . . . . . . . . . . . . . .3-4
3.3 Routing Service Availability. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .3-5
3.4 Risk Management Service Denitions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .3-5
3.4.1 Card Recovery Bulletin (CRB) Service. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .3-5
3.4.2 Fraud Reporting System (FRS). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .3-6
3.4.3 Visa Issuer Fraud Detection (VIFD) Service. . . . . . . . . . . . . . . . . . . . . . . . . .3-6
3.5 Risk Management Service Availability. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .3-6
3.6 Visa Secure Electronic Commerce (VSEC) Service Denition. . . . . . . . . . . . . . . .3-6
3.6.1 Visa Secure Electronic Commerce (VSEC) With Veried
by Visa (3-D Secure). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .3-6
3.7 VSEC Service Availability. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .3-7
3.8 Chip Card Service Denitions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .3-7
3.8.1 Visa Horizon Service. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .3-7
3.8.2 Visa Smart Debit/Smart Credit (VSDC) Service. . . . . . . . . . . . . . . . . . . . . .3-7
3.9 Chip Card Service Availability. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .3-7
3.10 Authorization Database Service Denitions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .3-8
3.10.1 Automatic Cardholder Database Update (Auto-CDB) Service. . . . . . . .3-8
3.10.2 Merchant Central File Service (MCFS). . . . . . . . . . . . . . . . . . . . . . . . . . . . . .3-8
3.11 Authorization Database Service Availability. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .3-8
3.12 Authorization Service Denitions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .3-9
3.12.1 Account Verication Service. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .3-9

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3.12.2 Address Verication Service (AVS). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .3-9

3.12.3 Advice Retrieval Service—BASE I. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .3-9
3.12.4 Advice Retrieval Service—SMS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3-9
3.12.5 ATM Format Conversion Service. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .3-9
3.12.6 Card Verication Value (CVV) Service. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .3-10
3.12.7 Card Verication Value 2 (CVV2) Service. . . . . . . . . . . . . . . . . . . . . . . . . .3-10
3.12.8 Cardholder Authentication Verication Value (CAVV)
Verication Service. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .3-10
3.12.9 Custom Payment Service (CPS)/ATM. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .3-10
3.12.10 Custom Payment Service (CPS)/POS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .3-10
3.12.11 Deferred Clearing Advice File (DCAF) Service. . . . . . . . . . . . . . . . . . . . . .3-11
3.12.12 Dynamic Card Verication Value (dCVV) Service. . . . . . . . . . . . . . . . . . .3-11
3.12.13 Dynamic Key Exchange (DKE) Service. . . . . . . . . . . . . . . . . . . . . . . . . . . . .3-11
3.12.14 Full Authorization Service. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .3-11
3.12.15 International Automated Referral Service (IARS). . . . . . . . . . . . . . . . . . .3-11

Contents
3.12.16 Multicurrency Service. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .3-12
3.12.17 PIN Verication Service (PVS). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .3-12
3.12.18 POS Check Service. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .3-12
3.12.19 Positive Authorization Capacity Management (PACM) Service. . . . .3-12
3.12.20 Positive Cardholder Authorization Service (PCAS). . . . . . . . . . . . . . . . . .3-12
3.12.21 Preauthorized Payment Cancellation Service (PPCS). . . . . . . . . . . . . .3-13
3.12.22 Status Check Service. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .3-13
3.12.23 VisaNet Cashback Service. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .3-13
3.12.24 VisaPhone Service. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .3-13
3.13 Authorization Service Availability. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .3-13
3.14 Additional Service Denitions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .3-14
3.14.1 Chargeback Reduction Service (CRS). . . . . . . . . . . . . . . . . . . . . . . . . . . . . .3-14
3.14.2 Visa Check Card II. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .3-15
3.14.3 ATM Processing Integration. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .3-15
3.15 Additional Service Availability. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .3-15

CHAPTER 4 ACQUIRER AND ISSUER RESPONSIBILITIES

4.1 Establishing Processing Centers. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .4-1
4.1.1 Network Stations. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .4-1
4.1.2 V.I.P. Message Support. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .4-1
4.1.3 Testing and Certication. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .4-2
4.1.4 Network Management. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .4-2
4.1.5 SMS Reconciliation and Settlement. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .4-2
4.2 Acquirer Processing Center Requirements. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .4-3
4.2.1 POS Connections and Procedures. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .4-3
4.2.2 PIN Security. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .4-4
4.2.3 Response Procedures. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .4-4
4.2.4 Merchant Central File Management. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .4-5
4.2.5 Follow-Up Procedures and Processing. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .4-5
4.2.6 Other Responsibilities. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .4-5
4.3 Issuer Processing Center Requirements. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .4-5
4.3.1 Transaction Authorization. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .4-6

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4.3.2 Cardholder Database Management. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .4-6

4.3.3 PIN Security. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .4-6
4.3.4 Coordination With Visa. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .4-7
4.3.5 Response Procedures. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .4-7
4.3.6 Follow-Up Procedures and Processing. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .4-7
4.3.7 Other Responsibilities. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .4-8

APPENDIX A TRANSACTION TYPES

A.1 Cardholder Transactions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .A-2
A.2 Merchant-Authorized Transactions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .A-4
A.3 System-Generated Transactions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .A-5
A.4 Exception Transactions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .A-5
A.5 Fee-Related Transactions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .A-5
Contents

A.6 Reconciliation Transactions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .A-6

A.7 File Maintenance Transactions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .A-6
A.8 Administrative Transactions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .A-6
A.9 Network Management Transactions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .A-6

Index

iv Visa *Condential* V.I.P. System Overview 1 June 2005

 X Figures

1-1 The VisaNet Communications Network. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .1-3

1-2 VisaNet Communication Flows. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .1-4
1-3 VisaNet Systems and Transaction Processing. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .1-5
1-4 The VisaNet Software System Components. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .1-8
1-5 V.I.P. System Software at the VIC and at the Processing Center. . . . . . . . . . . . . . . . . .1-10
1-6 VisaNet Settlement Service (VSS) Process. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .1-11
2-1 VisaNet Basic Process Flow. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .2-1

Figures

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Figures

vi Visa *Condential* V.I.P. System Overview 1 June 2005

 X Tables

1 Document Conventions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .2
2 Descriptions of V.I.P. System Manuals. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .3
1-1 Comparison of Visa Products. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .1-3
2-1 V.I.P. Message Structure. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .2-3
3-1 V.I.P. Services by Functional Group. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .3-1
3-2 Routing Service Availability. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .3-5
3-3 Risk Management Service Availability. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .3-6
3-4 VSEC Service Availability. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .3-7
3-5 Chip Card Service Availability. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .3-8
3-6 Authorization Database Service Availability. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .3-8
3-7 Authorization Service Availability. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .3-14

Tables
3-8 Additional Service Availability. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .3-15
A-1 V.I.P. Transaction Types. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .A-1

1 June 2005 Visa *Condential* V.I.P. System Overview vii

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Tables

viii Visa *Condential* V.I.P. System Overview 1 June 2005

 X About This Manual

The V.I.P. System Overview presents general information about the VisaNet Integrated Payment
(V.I.P.) System, Visa’s main transaction processing system. It describes VisaNet (the global
Visa transaction processing network), denes its hardware and software system components,
and explains where the V.I.P. System resides within the network.

This manual also:

• Provides basic information about Visa messages and transactions and gives an overview of
V.I.P. transaction processing.
• Lists Visa services available to members connected to the V.I.P. System and provides a
brief description of each service.
• Outlines the responsibilities of Visa acquirers and issuers and includes considerations to take
into account when deciding to connect to VisaNet.
For specic topics by chapter, see the “Organization of This Manual” section of this chapter.

AUDIENCE

The V.I.P. System Overview is intended for readers who have little or no knowledge of VisaNet,
the V.I.P. System, and Visa transaction processing. This manual provides a basic, high-level
overview of the network and its systems and refers readers to sources for more information
about specic topics.

About This Manual

ORGANIZATION OF THIS MANUAL

The V.I.P. System Overview is organized as follows:

Chapter 1, V.I.P. System Basics—Provides an overview of the V.I.P. System, including a

description of VisaNet, the basic V.I.P. authorization process ow, and VisaNet components.
It identies and describes both V.I.P. online and V.I.P. ofine functions.

Chapter 2, V.I.P. Transaction Processing—Describes V.I.P. messages and transactions and

provides an overview of V.I.P. transaction processing.

Chapter 3, V.I.P. System Services—Lists the services available to members connected to

V.I.P. and provides a brief denition of each service. Refer to V.I.P. System Services, Volume 1
and Volume 2, for complete service descriptions.

Chapter 4, Acquirer and Issuer Responsibilities—Identies participation requirements and

options both for acquirers and for issuers.

Appendix A, Transaction Types—Lists all valid V.I.P. transaction types and indicates whether
the transaction is available for processing under the BASE I System, under the Single Message
System (SMS), or under both systems.

1 June 2005 Visa *Condential* V.I.P. System Overview 1

 X Document Conventions

DOCUMENT CONVENTIONS

Table 1 shows the document conventions used in this manual.

Table 1 Document Conventions

Document Convention Purpose in This Manual

boldface Extra emphasis (stronger than italics); eld values.

EXAMPLE Identies an example of what the accompanying text describes or explains.

IMPORTANT Highlights important information in the text.

italics Document titles; emphasis; variables.
Section names referenced in a chapter; rst instance of a word used in an
“text in quote marks”
unconventional or technical context.
NOTE Provides more information about the preceding topic.
n/a Not applicable.
Systems or procedures that are not directly involved in the process being
shaded illustrations
illustrated in the graphic.
white boxes in ow
White boxes represent request messages.
diagrams
shaded boxes in ow
Shaded boxes represent response messages.
diagrams
dotted line boxes in ow
Boxes with dotted lines illustrate advice messages.
About This Manual

diagrams

V.I.P. SYSTEM DOCUMENTATION DESCRIPTIONS

This book is part of the set of V.I.P. System documents. The V.I.P. System Overview is designed
to be a companion to the two-volume V.I.P. System Services, which has also been updated.
The V.I.P. System Overview and V.I.P. System Services contain new and updated information and
incorporate all system changes and revisions described in the VisaNet Business Enhancements
technical letters and in updates published after October 2004 through April 2005. See the
“Sources of V.I.P. Information” section of this chapter for a complete list of sources used to
prepare this V.I.P. System Overview manual.

The rst three manuals in this series: V.I.P. System Overview, V.I.P. System Services, and V.I.P.
System Reports, apply both to BASE I and to SMS processing.

The next two manuals are specic to the BASE I System: V.I.P. System BASE I Processing
Specications and V.I.P. System BASE I Technical Specications, Volume 1 and Volume 2.

For the Single Message System, the United States (U.S.) region processing specications for
ATM, for Interlink, and for POS have been consolidated in one manual, V.I.P. System SMS
Processing Specications (U.S.). For the international audience, there are separate processing
specications manuals for ATM and for POS.

2 Visa *Condential* V.I.P. System Overview 1 June 2005

 X V.I.P. System Documentation Descriptions

Table 2 provides brief descriptions of V.I.P. System manuals.

Table 2 Descriptions of V.I.P. System Manuals

General Information
V.I.P. System Overview

Provides basic descriptions of the VisaNet network and its components, connections, processing
concepts, requirements, and options. Contains descriptions of the V.I.P. System, access methods,
the BASE I System and the Single Message System, issuer and acquirer responsibilities, and Visa
Interchange Center (VIC) operations. Also provides a brief introduction to V.I.P. services.

Doc ID 0851-06
V.I.P. System Reports

Provides sample reports for V.I.P. System services, BASE I, and Single Message System processing.

Doc ID 0852-06
V.I.P. System Services, Volume 1

Provides complete information about V.I.P. System services available to BASE I and to SMS users.
Service descriptions include basic information, processing requirements, options, features, key
message elds, and message ows.

Volume 1 contains the following parts:

Part 1: V.I.P. Basics

Part 2: Routing Services
Part 3: Risk Management Services
Part 4: Visa Secure Electronic Commerce (VSEC) Services

About This Manual

Part 5: Chip Card Services

Doc ID 0853A-06
V.I.P. System Services, Volume 2

Provides complete information about V.I.P. System services available to BASE I users and to SMS
users. Service descriptions include basic information, processing requirements, options, features, key
message elds, and message ows.

Volume 2 contains the following parts:

Part 6: Authorization Database Files and Services

Part 7: Authorization Services

Doc ID 0853B-06
BASE I
V.I.P. System BASE I Processing Specications

Describes V.I.P. transaction processing in the BASE I System environment, including message types,
processing considerations, security responsibilities, related services, and connection options.

Doc ID 0847-06

1 June 2005 Visa *Condential* V.I.P. System Overview 3

 X V.I.P. System Documentation Descriptions

Table 2 Descriptions of V.I.P. System Manuals (continued)

V.I.P. System BASE I Technical Specications, Volume 1

Documents technical specications of V.I.P. transaction processing in the BASE I System environment.
This companion volume to V.I.P. System BASE I Processing Specications describes the elds for BASE I.

Doc ID 0844A-07
V.I.P. System BASE I Technical Specications, Volume 2

Documents technical specications of V.I.P. transaction processing in the BASE I System environment.
This companion volume to V.I.P. System BASE I Processing Specications describes the message
formats and le specications for BASE I.

Doc ID 0844B-07
Interlink
V.I.P. System SMS Processing Specications (U.S.)

Contains information about the Single Message System, including message types, processing
considerations, connection options, security responsibilities, and related services for Visa/Plus ATM,
Interlink, Visa POS, and Visa Electron.

Doc ID 0857-06
V.I.P. System SMS Interlink Technical Specications

Companion volume to V.I.P. System SMS Processing Specications (U.S.). Describes message formats,
eld descriptions, and le specications for Interlink.

Doc ID 0866-05
About This Manual

SMS ATM
V.I.P. System SMS Processing Specications (U.S.)

Contains information about the Single Message System, including message types, processing
considerations, connection options, security responsibilities, and related services for Visa/Plus ATM,
Interlink, Visa POS, and Visa Electron.

Doc ID 0857-06
V.I.P. System International SMS ATM Processing Specications

Contains information about Single Message System ATM processing, including message types,
processing considerations, connection options, security responsibilities, and related services.

Doc ID 0839-06
V.I.P. System SMS ATM Technical Specications, Volume 1

Companion volume to V.I.P. System SMS Processing Specications (U.S.) and to V.I.P. System
International SMS ATM Processing Specications. Contains information about eld descriptions
for ATM.

Doc ID 0868A-05

4 Visa *Condential* V.I.P. System Overview 1 June 2005

 X Sources of V.I.P. Information

Table 2 Descriptions of V.I.P. System Manuals (continued)

V.I.P. System SMS ATM Technical Specications, Volume 2

Companion volume to V.I.P. System SMS Processing Specications (U.S.) and to V.I.P. System
International SMS ATM Processing Specications. Contains information about message formats
and le specications for ATM.

Doc ID 0868B-05
SMS POS
V.I.P. System SMS Processing Specications (U.S.)

Contains information about the Single Message System, including message types, processing
considerations, connection options, security responsibilities, and related services for Visa/Plus ATM,
Interlink, Visa POS, and Visa Electron.

Doc ID 0857-06
V.I.P. System International SMS POS (Visa & Visa Electron) Processing Specications

Contains information about Single Message System POS processing, including message types,
processing considerations, connection options, security responsibilities, related services, and reports.

Doc ID 0835-06
V.I.P. System SMS POS (Visa & Visa Electron) Technical Specications, Volume 1

Companion volume to V.I.P. System SMS Processing Specications (U.S.) and to V.I.P. System
International SMS POS (Visa & Visa Electron) Processing Specications. Describes the elds for
Visa POS and for Visa Electron.

Doc ID 0869A-05

About This Manual

V.I.P. System SMS POS (Visa & Visa Electron) Technical Specications, Volume 2

Companion volume to V.I.P. System SMS Processing Specications (U.S.) and to V.I.P. System
International SMS POS (Visa & Visa Electron) Processing Specications. Describes message formats
and le specications for Visa POS and for Visa Electron.

Doc ID 0869B-05

SOURCES OF V.I.P. INFORMATION

This section lists the primary sources for the information contained in the V.I.P. System
Overview. The information from these sources has been analyzed, rewritten, and reorganized,
when necessary. Technical staff and service experts reviewed and veried these updates. In
addition, this revised manual incorporates, where appropriate, all of the comments and change
requests received from members and from Visa staff.

Existing Manuals

For a list of the existing manuals, refer to Table 2.

Technical Letters

The V.I.P. System Overview includes information from the following technical letters:

1 June 2005 Visa *Condential* V.I.P. System Overview 5

 X Obtaining Report Samples

• October 2004 VisaNet Business Enhancements Technical Letter, publication 80030-01,

including Update Bulletins
• April 2005 VisaNet Business Enhancements Technical Letter, publication 90011-03,
including Update Bulletins

Other Documents

Other documents used as sources for the V.I.P. System Overview include:

Address Verication Service Business Context

Address Verication Service User’s Guide

CPS/ATM for BASE I and BASE II Members Member Implementation Guide

Payment Technology Standards Manual

POS Check Service Planning Guide

The Road to Chip: An Employee Guide to Visa Smart Card Development

Visa Horizon Brochure and Fact Sheets

Visa Operating Regulations (and all revisions)

Other sources include RTN publications, general design documents, detailed design
About This Manual

documents, service advisories, and project presentations.

OBTAINING REPORT SAMPLES

Visa offers a variety of reports to members. Many of these reports clarify and track service
processing. The following documents provide report samples:
• V.I.P. System Reports
• VisaNet Settlement Service (VSS) User’s Guide, Volume 2, Reports
Members can contact their Visa representatives to discuss reporting options or to obtain
additional samples.

FOR MORE INFORMATION

Visa provides documentation to support Visa products and services. For many of the
services described in this manual, Visa has developed implementation guides that contain
region-specic details about signing up for a service, selecting options, and installing, testing,
and operating the service. Members can ask their Visa representatives for regional guides.

The V.I.P. documentation suite does not contain details about the BASE II System.
For information about this system, members can contact their Visa representatives.
V.I.P. documentation does not contain information about AS2805. Members can ask their Visa
representatives to obtain a copy of the AS2805 Technical Specications Manual.

6 Visa *Condential* V.I.P. System Overview 1 June 2005

 X For More Information

Related Publications

The publications listed in this section provide information about Visa systems, regulations, and
additional services not covered in this manual. Use the following information to obtain any
of the listed publications, to be added to or removed from distribution lists, or to inquire
about other publications.
• U.S. members and third-party processors can contact the Visa U.S.A. Member Publications
department by sending an e-mail to [email protected].
• Members and third-party processors in all other Visa regions can contact their Visa
representatives.
• U.S.-based Visa staff (except those in Miami) can send an e-mail request to
[email protected]. Docline distributes VisaNet documentation and tries to locate other
publications distributed elsewhere within Visa.
• Visa staff located in Miami and outside of the U.S. can contact their regional representatives.
To inquire about VisaNet documentation or to submit changes and additions, contact Technical
Communications Services by sending an e-mail to [email protected].

Operating Regulations

Operating regulations for the six Visa regions are published in the following manuals:

Visa International Operating Regulations

The Visa International Operating Regulations consists of three volumes of operating regulations
covering all Visa regions except the U.S. region, namely:
• Volume I—General Rules

About This Manual

• Volume II—Dispute Resolution Rules
• Volume IV—Interlink Program Operating Regulations
Regions are also governed by the regulations in Visa International Card and Marks
Specications (which replaced Volume III).

The Visa Regional Operating Regulations refers to operating regulations for each of the Visa
regions except the U.S. region, namely:
• Visa Regional Operating Regulations—Asia-Pacic (AP)
• Visa Regional Operating Regulations—Canada (CAN)
• Visa Regional Operating Regulations—Central and Eastern Europe, Middle East, and Africa
(CEMEA)
• Visa Regional Operating Regulations—Europe (EU)
• Visa Regional Operating Regulations—Latin America and Caribbean (LAC)

Visa U.S.A. Inc. Operating Regulations and By-Laws

The Visa U.S.A. Inc. Operating Regulations consists of two volumes of operating regulations for
the U.S. region only:
• Volume I—General Rules
• Volume II—Dispute Resolution Rules
The U.S. region is also governed by the Visa U.S.A. Inc. By-Laws.

1 June 2005 Visa *Condential* V.I.P. System Overview 7

 X For More Information

BackOfce Adjustment System (BOAS)—DOS Version

For information about BOAS, refer to:

BOAS Administration and Technical Guide

Using BOAS With the BASE II System

Using BOAS With the Single Message System

Deferred Clearing Advice File (DCAF) Service

For information about DCAF, refer to V.I.P. System Services, Volume 2.

POS Check Service

For information about the POS Check Service, refer to:

Visa U.S.A. POS Check Service Operating Regulations

V.I.P. System Services, Volume 2

V.I.P. System SMS POS (Visa & Visa Electron) Technical Specications

VisaNet Settlement Service (VSS) User’s Guide, Volume 2, Reports

Risk Management Services

For information about risk management services, refer to:

About This Manual

Card Recovery Bulletin Service User’s Guide

Fraud Reporting System User’s Manual

Issuer’s Clearinghouse Service User’s Guide

National Merchant Alert Service User’s Guide

Risk Identication Service User’s Manual

Risk Management Process Guide

V.I.P. System Services, Volume 1

Visa Issuer Fraud Detection (VIFD) Service Workstation User’s Guide

Security

For information about data and system security, refer to the following documents:

Introduction to Cryptography and PIN Security

Payment Technology Standards Manual

PIN Security Program: Auditor’s Guide

PIN Security Requirements

8 Visa *Condential* V.I.P. System Overview 1 June 2005

 X For More Information

Visa Image Exchange Workstation (VIEW)

For information about VIEW and about VIEW OnLine, refer to:

Visa Image Exchange Workstation (VIEW) Administrator’s Guide

Visa Image Exchange Workstation (VIEW) Installation Guide

Visa Image Exchange Workstation (VIEW) User’s Guide

Visa Image Exchange Workstation (VIEW) OnLine Thick Client User’s Guide

Visa Image Exchange Workstation (VIEW) OnLine Thick Client Member Implementation Guide

Visa Image Exchange Workstation (VIEW) OnLine Thin Client User’s Guide

Visa Image Exchange Workstation (VIEW) OnLine Thin Client Member Implementation Guide

Visa Smart Debit/Smart Credit (VSDC) Service

For information about the VSDC Service, refer to:

V.I.P. System Services, Volume 1—This manual contains a complete service description.

Visa Smart Debit and Visa Smart Credit Service Description—This manual provides a high-level
description of the features and the benets of a VSDC program.

Visa Smart Debit and Credit Planning Guide—This manual helps members plan their VSDC
program and migration strategy to position themselves competitively for the future.

About This Manual

Visa Smart Debit and Credit Member Implementation Guide for Issuers—This manual provides
guidelines for issuers involved in the implementation of new VSDC programs.

Visa Smart Debit and Credit Member Implementation Guide for Acquirers—This manual
provides guidelines for acquirers involved in the implementation of new VSDC programs.

Visa Smart Debit/Visa Smart Credit System Technical Manual—This manual provides
information for members and for Visa staff responsible for the implementation and the
operation of a VSDC program.

Visa Integrated Circuit Card Specications—This 3-volume manual contains the technical
specications for how the VSDC card application works, describing both the functionality
and the ow of a VSDC transaction.

VisaNet Access Points (VAPs)

For information about VisaNet Access Points (VAPs), refer to the pertinent sets of
documentation listed below. The VAP Release 10.23 documentation is for PS/2 architecture;
the VAP Release 11 documentation is for PCI and ISA architecture.

VAP Release 10.23 Documentation

VAP Computer-Based Training User’s Guide

VAP Interface Specications: BASE II and Other File Processing

1 June 2005 Visa *Condential* V.I.P. System Overview 9

 X For More Information

VAP Interface Specications: V.I.P. Processing

VAP Messages and Troubleshooting

VAP Operator’s Guide

VAP Software Library

VAP Systems Guide

VAP Release 11 Documentation

VAP Release 11 Interface Specications: BASE II and Other File Processing

VAP Release 11 Interface Specications: V.I.P. Processing

VAP Release 11 Maintenance, Messages, and Troubleshooting Guide

VAP Release 11 Operator’s Guide

VisaNet Copy Request and Fulllment Service (VCRFS)

For information about the VisaNet Copy Request and Fulllment Service (VCRFS), refer to:

VCRFS Fax Gateway User’s Guide

VCRFS Processing Guide

VisaNet Image Gateway Image Interface Technical Specications

About This Manual

VisaNet Image Gateway User’s Guide

Miscellaneous Systems and Services

For more information about miscellaneous systems and services relevant to V.I.P., refer to:

V.I.P. System Services, Volume 1 and Volume 2

Visa Global ATM Planning Guide—This manual contains information about the Visa/Plus
International ATM Program. It includes an overview of the program, its business requirements,
optional services, risk management, processing options, certication procedures, and back
ofce management.

Address Verication Service (AVS) User’s Guide

Card Verication Value (CVV) Member Technical Guide

Cardholder Verication Value Reporting User’s Guide

Visa Information System User’s Guide

VisaNet, Banknet, American Express Cross-Reference—This document includes eld-by-eld

data transfer descriptions between VisaNet-format dual-message 0100 authorization requests
and responses, and American Express- and MasterCard-format authorization requests and
responses.

10 Visa *Condential* V.I.P. System Overview 1 June 2005

 X For More Information

VisaNet Settlement Service (VSS) User’s Guide, Volume 1, Specications

VisaNet Settlement Service (VSS) User’s Guide, Volume 2, Reports

Visa Test System - Version 3 User’s Guide

About This Manual

1 June 2005 Visa *Condential* V.I.P. System Overview 11

 THIS PAGE INTENTIONALLY LEFT BLANK.
About This Manual
 Chapter 1 V.I.P. System Basics

This chapter provides a description of VisaNet, transaction process ows, and Visa products.
It also describes VisaNet components and VisaNet processing systems.

1.1 VISANET OVERVIEW

VisaNet is the Visa transaction processing network. The term applies to all components of the
network, from the hardware, software, and communications facilities that connect the Visa
network with members’ systems and with other networks, to the systems that perform all
transaction processing and system services. VisaNet routes transactions between acquirers
and issuers through its global transaction processing network.

Depending on the Visa region, VisaNet supports:

V.I.P. System Basics

• Purchase, cash, and bill payment transactions made with any Visa card, including contactless
cards.
• Recurring payment transactions, as well as prepaid card transactions that allow partial
approvals.
• Purchase transactions made with major travel and entertainment (T&E) cards.
• ATM transactions for other networks such as Plus, which, where available, also supports the
purchase of dispensable products such as stamps, lift tickets, and coupons.
• Purchase and cash transactions made with other private-label and proprietary cards.
These transactions are processed through VisaNet’s authorization, clearing, and settlement
services, which are available to members in all Visa regions. Visa denes these basic services
as follows:
• Authorization is when the issuer approves or declines a sales transaction before a purchase
is nalized or cash is disbursed.
• Clearing is when a transaction is delivered from an acquirer to an issuer for posting to
the cardholder’s account.
• Settlement is the process of calculating and determining the net nancial position of each
member for all transactions that are cleared. The actual exchange of funds is a separate
process.
Transactions can be authorized, cleared, and settled either as dual-message or single-message
transactions.

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 Chapter 1 Visa Products

• A dual-message transaction is sent twice, the rst time with only the information needed for
an authorization decision, and again later with additional information required for clearing
and settlement. Typically, authorization is performed online while clearing and settlement
occur later ofine.
• A single-message transaction is sent once for authorization and contains clearing and
settlement information as well as authorization information. These transactions are also
called “full nancial” transactions. Typically, authorization and clearing occur online, while
settlement occurs later ofine.
Single-message transactions also may be processed using online deferred clearing. In this
case, transactions are authorized online, and are cleared and settled at a later time.
Deferred clearing can be used for transactions for which the nal purchase amount is not
known at the time of authorization; for instance, for transactions submitted by hotels and by
car rental agencies.
V.I.P. System Basics

NOTE
Only Visa point-of-sale or point-of-service (POS) acquirers and Visa Electron acquirers can submit deferred
clearing transactions. However, an issuer can receive deferred clearing advices for ATM transactions if they do
not participate in the ATM Format Conversion Service. Refer to the ATM Format Conversion Service chapter
in V.I.P. System Services, Volume 2, for information about this service.
For more information about POS and Visa Electron transactions, refer to V.I.P. System SMS Processing
Specications (U.S.) or to V.I.P. System International SMS POS (Visa & Visa Electron) Processing Specications.

1.2 VISA PRODUCTS

This section briey describes the various Visa products that are referenced in this book. Visa
also offers many other products that are not described here as well as product platforms
such as chip cards.

Visa offers products that access a cardholder’s line of credit as well as a cardholder’s checking
or savings account. Visa products include:

Visa Debit—Visa Debit (known in the United States [U.S.] region as Visa check card II) is
a debit card program accepted at any Visa merchant or ATM location. The amount of each
purchase is automatically deducted from the cardholder’s deposit account. POS purchases
require a signature or a PIN, and ATM cash disbursements require a PIN.

Visa Electron—Visa Electron is a global acceptance mark that can be used for payment
and for cash access in electronic merchant environments and through the Visa global ATM
network. All transactions are authorized by the issuer and are veried by the cardholder with
either a PIN or a signature.

Visa Horizon—Visa Horizon is a single currency payment application that can be used both
for cash disbursements and for purchases. The service uses chip cards and VSDC-capable
terminals and ATMs. Issuers determine cardholder spending limits, and all transactions
require a PIN.

Visa Interlink—Visa Interlink (known in the U.S. region as Interlink) is a single-message

deposit access service that offers all electronic processing at the POS. Cardholders can use
their ATM card to make purchases at participating retail locations and to request cash back
from their purchases. Interlink requires the cardholder to enter a PIN.

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 Chapter 1 VisaNet Components

Plus—Plus is an ATM card program available to Visa members worldwide. Plus System,
Inc., using the Plus network, provides ATM interchange for cards bearing the PLUS logo.
PLUS access requires PIN verication.

Table 1-1 compares the Visa products referenced in this book.

Table 1-1 Comparison of Visa Products

Cardholder Acceptance
Visa Product Type of Processing Identication Environment
Visa Debit Dual- or single-message • Usually signature for POS • ATM
transactions, but PIN can • POS
(Visa check card II) be accepted
• PIN for ATM transactions
Visa Electron Dual- or single-message • Usually signature for POS • ATM
transactions, but PIN can • POS
be accepted

V.I.P. System Basics

• PIN for ATM transactions
Visa Horizon Dual-message • PIN for POS transactions • ATM
• PIN for ATM transactions • POS
Visa Interlink Single-message PIN POS
Plus Dual- or single-message PIN ATM

1.3 VISANET COMPONENTS

The main components of VisaNet are:
• VisaNet Interchange Centers (VICs).
• VisaNet Access Points (VAPs) and other network connections.
• Processing centers.
Figure 1-1 illustrates the VisaNet communications network.

Figure 1-1 The VisaNet Communications Network

VAP VAP
Acquirer Issuer
Processing VIC Processing
Center Center

VisaNet Interchange Centers (VICs)—A VIC is a Visa data processing center. There are four
VICs: two in the United States, one in the United Kingdom, and one in Japan. Each VIC
houses the computer systems that perform all VisaNet transaction processing. The VIC serves
as the control point for the telecommunications facilities of the VisaNet Communications
Network, which comprises high-speed leased lines or satellite connections based on IBM
SNA and TCP/IP protocols.

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 Chapter 1 VisaNet Components

VisaNet Access Point (VAP)—A VAP is a Visa-supplied small computer system (located at
the processing center) that provides the interface between the center’s host computer and
the VIC. The VAP facilitates the transmission of messages and les between the center host
and the VIC, supporting the authorization, clearing, and settlement of transactions. Visa
also provides other connection options for interacting with VisaNet that do not require VAPs.
Options vary by region. Members can contact their Visa representatives for available options.

For information about VAPs, refer to About This Manual for a list of VAP documents.

Processing Center—A processing center, also referred to as simply a center, is a data

processing facility operated by or designated by an issuer or an acquirer. The processing
center houses card processing systems that support merchant and business locations and
maintain cardholder data and billing systems.

Each processing center communicating with VisaNet is linked to two VICs. Centers are
V.I.P. System Basics

connected to the closest, or primary, VIC. If one VIC experiences system interruptions, VisaNet
automatically routes members’ transactions to a secondary VIC, ensuring continuity of service.

Each VIC is also linked to all of the other VICs. This link enables processing centers to
communicate with each other through one or more VICs. Processing centers can also access
the networks of other card programs through the VIC.

Figure 1-2 illustrates how communication ows between the processing centers and the VICs.

Figure 1-2 VisaNet Communication Flows

s
re s
xp
ub
nE
Cl
ca
rs

et
er i
ne

n
nk
Am

r
Di

ve
Ba

s co
Di
s
Pl u

VIC VIC

Processing Center Processing Center

VIC VIC

VisaNet operates 24 hours a day throughout the year. Visa provides the following back-up
capabilities:

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 Chapter 1 VisaNet Systems

• VisaNet backs up VAP systems.

• VisaNet backs up the V.I.P. lines from the VAPs to the VICs.
• VICs back up each other.
In addition, the VisaNet network ensures that all of its links have multiple backups. The
connection from one point in the network to another is not usually a xed link; instead,
VisaNet chooses the best possible path at the time of any given transmission. Rerouting
around any failed line occurs automatically.

1.4 VISANET SYSTEMS

The VICs house the following VisaNet systems that provide both online and ofine transaction
processing:
• The VisaNet Integrated Payment (V.I.P.) System, which includes the BASE I System and
the Single Message System (SMS)
• The BASE II System
• The VisaNet Settlement Service (VSS)

V.I.P. System Basics

These VisaNet systems perform authorization, clearing, and settlement, as shown in Figure 1-3.

Figure 1-3 VisaNet Systems and Transaction Processing

VisaNet

Dual Message Single Message

Authorization BASE I

Single Message
System (SMS)

Clearing BASE II

Settlement VisaNet Settlement Service (VSS)

1.4.1 VisaNet Integrated Payment (V.I.P.) System

The V.I.P. System is the primary online transaction switching and processing system for all
online authorization and nancial request transactions that enter VisaNet. It provides the V.I.P.
services described in this manual to members and to other users worldwide.

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 Chapter 1 VisaNet Systems

V.I.P. has one system that supports dual-message processing (authorization of transactions
is requested in a rst message, while nancial clearing information is sent in a second
message), and another system that supports single-message processing (the processing of
interchange card transactions that contain both authorization and clearing information in a
single message). In both cases, settlement occurs separately.

1.4.1.1 BASE I System

BASE I is the component of the V.I.P. System that processes authorization-only request
messages online. Authorization request messages are the rst messages sent in dual-message
processing. (BASE II clearing messages are the second messages sent in dual-message
processing.)

The BASE I component of the V.I.P. System supports online functions, ofine functions, and
the BASE I les. BASE I les include the internal system tables, the BASE I Cardholder
Database, and the Merchant Central File.
V.I.P. System Basics

Refer to V.I.P. System Services, Volume 2, for information about the Cardholder Database and
about the Merchant Central File.

BASE I Online Functions—The BASE I online functions include dual-message authorization

processing. BASE I online processing involves routing, cardholder and card verication, and
stand-in processing (STIP), plus related functions, such as Card Verication Value (CVV)
validation, PIN verication, and le maintenance.
NOTE
BASE I is not used for Interlink transaction processing.

A bridge from BASE I to SMS makes it possible for BASE I members to communicate with SMS
members and to access the SMS gateways to outside networks.

Refer to V.I.P. System Services, Volume 1, for information about networks supported by
Gateway Services.

BASE I Ofine Functions—The BASE I ofine functions include BASE I reporting and the
generation of Visa Card Recovery Bulletins. BASE I reporting includes authorization reports,
exception le and advice le reports, and POS reports. For more information about BASE I
ofine functions, refer to V.I.P. System BASE I Processing Specications and to V.I.P. System
BASE I Technical Specications, Volume 1 and Volume 2.

1.4.1.2 Single Message System (SMS)

The Single Message System (SMS) component of the V.I.P. System processes full nancial
transactions. Full nancial transactions contain both authorization and clearing information.
Because the authorization and clearing information is contained in one message, this form
of processing is referred to as single-message processing. SMS (formerly called Debit) also
supports dual-message processing of authorization and clearing messages, communicating
with BASE I and accessing outside networks, as required, to complete transaction processing.
Only the SMS component performs single-message processing.

A bridge from SMS to BASE I makes it possible for SMS users to communicate with BASE I
users and to access the BASE I gateways to outside networks.

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 Chapter 1 VisaNet Systems

Refer to V.I.P. System Services, Volume 1, for information about networks supported by
Gateway Services.

SMS supports online functions, ofine functions, and the SMS les. The SMS les comprise
internal system tables that control system access and processing, and the SMS Cardholder
Database, which contains les of cardholder data used for PIN verication and for stand-in
processing (STIP) authorization.

SMS Online Functions—The SMS online functions perform real-time cardholder transaction
processing and exception processing. This processing supports both authorizations and full
nancial transactions. In addition, SMS supports the delivery of transactions to the BASE II
System for members that use dual-message processing.

SMS also accumulates reconciliation totals, performs activity reporting, and passes activity data
to VisaNet, which supports settlement and funds transfer processing for SMS. VisaNet handles
settlement and funds transfer as an automatic follow-up to SMS transaction processing.

V.I.P. System Basics

The VisaNet Settlement Service (VSS) performs settlement as a separate process that delivers
its results through advices and reports. For an illustration of the relationship of VSS to SMS
and to BASE II, see the “VisaNet Settlement Service (VSS)” section of this chapter.

SMS Ofine Functions—The SMS ofine systems process settlement and funds transfer
requests and provide settlement and activity reporting. They also support an ofine bridge to
and from BASE II for those Visa and Plus clearing transactions that are sent between an SMS
member and a BASE II member.

Both the BASE I and the SMS components use les of member-supplied cardholder data and
processing parameters to perform online processing. Both systems interact with several ofine
systems, including BASE II and the BackOfce Adjustment System (BOAS).
NOTE
This manual does not provide details about BOAS. For information about this system, see “For ” in About This
Manual for a list of BOAS documents.

SMS processes Visa, Plus, Interlink, and other card transactions.

Issuers can choose to have all of their transactions processed by SMS or can use both BASE I
and BASE II, as well as SMS, to process their transactions. Issuers can also choose to use
different processing methods for different Visa products.
NOTE
SMS endpoints must use the V.I.P. International Organisation for Standardisation (ISO) message format and
must observe all rules for its use.

1.4.2 BASE II System

The BASE II System is an international electronic batch transaction clearing system for
the exchange of interchange data between acquirers and issuers. The system calculates
interchange fees between members.

BASE II performs the second part of dual-message processing. Through a BASE I System
connection, members submit authorization messages, which are cleared through a VisaNet

1 June 2005 Visa *Condential* V.I.P. System Overview 1-7

 Chapter 1 VisaNet Systems

connection to BASE II. A bridge to the V.I.P. System permits interchange between BASE II
processing centers and SMS processing centers.
NOTE
This manual does not provide details about BASE II. For information about this system, members can contact
their Visa representatives.

Settlement occurs through VSS. BASE II passes message data to VSS, which settles with
the issuer and with the acquirer. For more information about VSS, see “VisaNet Settlement
Service (VSS)” in this chapter.

Figure 1-4 illustrates how V.I.P. and its software system components, along with BASE II,
reside in the VisaNet network.

Figure 1-4 The VisaNet Software System Components

V.I.P. System Basics

VisaNet
V.I.P. System BASE II System

BASE I

SMS

Visa members and processors that use BASE I and BASE II may choose to use SMS to process
some of their transactions, or choose to use different processing methods for different Visa
products.
EXAMPLE
An issuer can use BASE I and BASE II processing for credit products and use SMS processing for debit products.

1.4.3 VisaNet Distributed Processing System (VDPS)

The VisaNet Distributed Processing System (VDPS) is a scalable, distributed, regionally based
alternative to the V.I.P. System that provides dual-message and single-message online
processing. VDPS is part of VisaNet. Regions and countries within regions can choose whether
to use VDPS or to use the V.I.P. System for intraregional or domestic online processing.

The functionality of VDPS is similar to that of V.I.P., and VDPS supports a suite of online
processing options, including:
• Visa, Visa Electron, and Plus production support.
• Stand-in processing.

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 Chapter 1 VisaNet Systems

• Authorization services, such as Address Verication Service, Card Verication Value Service,
and PIN Verication Service.
• Multicurrency Service.
• Gateway Services.
Cardholder transactions are sent between VDPS and V.I.P. depending on destination.
VDPS forwards to V.I.P. messages destined for V.I.P.-connected participants, and V.I.P. forwards
to VDPS messages destined for VDPS-connected participants.

Members can contact their Visa representatives for more information about VDPS.

VDPS acquirers and issuers connect to VDPS just as members currently connect to V.I.P.
The following subsection introduces various V.I.P. and VDPS access methods.

1.4.4 The Common Member Interface (CMI) and Other Access Methods
The Common Member Interface (CMI) is an access method that allows members and
processing centers to use the same communications line to send and to receive both BASE I

V.I.P. System Basics

and SMS messages. The communications line from a VAP to V.I.P. connects at the CMI at
the VIC.

The CMI processes BASE I messages and SMS messages. CMI processing in V.I.P. routes
messages to their BASE I or SMS destinations (depending on the type of processing requested)
and to the processing network in cases when the message species a network other than
VisaNet (for instance, the MasterCard Banknet network).
NOTE
Members establish processing and routing parameters for their stations in the Customer Online Repository (CORE).
Members can contact their Visa representatives to establish or to change their CORE settings.

The CMI accepts messages in BASE I-specic format, in SMS-specic format, and in V.I.P
format (the message format common to both BASE I and SMS). Functions of the CMI include
basic editing as well as routing.

With the CMI, any BASE I processing center, including those that use both BASE I and SMS,
can send BASE I messages. Any SMS processing center, including those that use both SMS
and BASE I, can send SMS messages. The CMI chooses the appropriate system based on the
source of the request, on the type of processing requested, and on the processing network in
cases when the message species a network.

Besides the CMI, other access methods available to members and to processing centers are:
• BASE I only.
• SMS only.
These methods allow members and processing centers to communicate with only one
component of V.I.P.—with BASE I or with SMS but not with both.

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 Chapter 1 VisaNet Systems

Figure 1-5 illustrates the V.I.P. system software components. In the example, the processing
center uses a single system for both BASE I processing and SMS processing.

Figure 1-5 V.I.P. System Software at the VIC and at the Processing Center

VIC

BASE I
V.I.P. System SMS
Offline Offline
Systems BASE I SMS Systems
Online Online
Component Component
V.I.P. System Basics

BASE I Files SMS Files

Common Member Interface (CMI)

Processing Center

VAP

V.I.P. Subsystem

Processing Center Host

1.4.5 VisaNet Settlement Service (VSS)

The VisaNet Settlement Service (VSS) consolidates the settlement functions of SMS and of
BASE II, including Interlink, into a single service for all products and services. Members and
processors receive settlement information from SMS and from BASE II in a standardized set
of reports. VSS provides exibility in dening nancial relationships, in selecting reports and
report destinations, and in establishing funds transfer points.

VisaNet processes interchange transactions for SMS and for BASE II through separate systems.
Both SMS and BASE II perform their own clearing functions. Clearing and settlement are
dened as follows:

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 Chapter 1 VisaNet Systems

• Clearing is the process of collecting an individual transaction from one member or processor
and delivering it to another. Clearing also includes valuation, the calculation of many types
of fees and charges.
• Settlement is the process of calculating and determining the net nancial position of each
member for all transactions that are cleared.
Figure 1-6 illustrates the VSS clearing and settlement process.

Figure 1-6 VisaNet Settlement Service (VSS) Process

BASE II Clearing SMS Clearing

V.I.P. System Basics

SMS Reports

VisaNet Settlement Service

Funds Transfer

Settlement Reports

1.4.6 V.I.P. Processing Parameters

Members and system users control both BASE I and SMS processing primarily by selecting
options and by establishing limits and parameters. V.I.P. executes the majority of system
functions according to parameters selected by the users. Most V.I.P. services offer users many
options for implementing and for operating the service.

Some services allow users to choose different options by BIN (that is, by a specic range of
card numbers for a specic card program). Other options apply to all messages processed by a
given processing center. Additional options enable individual stations at processing centers to
handle specic types of transactions.

V.I.P. maintains records of routing and processing rules that apply to BINs, to processing
centers, and to stations. These parameters are stored in the system tables (often called the
system globals or system les). Typically, multiple BINs point to a single processing center.
Users change their parameters as needed to reect business changes.

1 June 2005 Visa *Condential* V.I.P. System Overview 1-11

 Chapter 1 VisaNet Systems

V.I.P. also keeps records of the following relationships:

• Issuers to account numbers
• Issuers and acquirers to processing centers
• Processing centers to VICs
• Processing centers to network stations
Users report any changes in account number ranges or in processing center designations to
Visa. This information is vital to the correct routing of messages.

1.4.7 V.I.P. Messages

Information passes between members and V.I.P. in the form of BASE I and SMS messages.
Both BASE I and SMS messages are Visa variations of the International Organisation for
Standardisation (ISO) 8583 message, the international standard for the format of nancial
messages. Each message contains bit maps that specify the data elds that appear in the
message, a message type identier, and only those elds that are needed for the specic
V.I.P. System Basics

function intended.

V.I.P. checks each message for validity and edits messages as required. The CMI performs
message format conversion, if necessary.

Maintaining message integrity is critical to V.I.P. processing. Message integrity assures

participants that all other participants have followed Visa processing rules and that a participant
can act on a message or on a transaction as dened.

All participants keep track of incoming and outgoing messages.

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 Chapter 2 V.I.P. Transaction Processing

This chapter describes transaction ows, V.I.P. message format and structure, and V.I.P.
message processing including stand-in processing (STIP) and routing. It also describes
additional V.I.P. functions such as managing system tables and system databases, and
reporting.

2.1 TRANSACTION FLOW

This section describes the transaction ow between an acquirer and an issuer for a purchase at
a merchant location. This discussion is a high-level explanation; transaction processing steps
vary depending on the complexity of the transaction and on the processing services used.

Figure 2-1 illustrates a typical transaction processing ow.

Figure 2-1 VisaNet Basic Process Flow

Merchant VisaNet
or
ATM

V.I.P. Transaction Processing

Acquirer Issuer

Request
Response

1. The transaction begins when a card is inserted at an ATM or is swiped or keyed at a

point-of-sale or point-of-service (POS) terminal. POS and ATM transactions can also be
initiated using contactless technology; that is, cardholder data is transferred from the card
to the terminal without physical contact (enabled by the Visa Proximity Payment Program).
The terminal prompts the cardholder for a personal identication number (PIN), if applicable.
2. The merchant creates a nancial request message and forwards it to the acquirer. The
request includes the transaction type, the merchant name, the encrypted PIN, and the
transaction amount.
3. The acquirer logs the request, excluding the PIN information, and forwards the message to
VisaNet.
4. The V.I.P. System logs the transaction, performs currency conversion if requested, and
routes the message to the issuer. Routing is based on the card number and on routing
options selected by the acquirer and by the issuer. V.I.P. may route the transaction to STIP
instead of to the issuer for processing, depending on issuer and Visa options for processing
in issuer-available and issuer-unavailable conditions.

1 June 2005 Visa *Condential* V.I.P. System Overview 2-1

 Chapter 2 V.I.P. Message Processing

5. The issuer veries the PIN, checks the transaction amount against the account’s available
balance or open-to-buy balance, and checks daily activity limits and other controls, if any.
The issuer logs the transaction and, for approved transactions, places a hold on the funds
or reduces the cardholder’s available balance by the amount of the transaction. The issuer
creates an authorization or nancial response message based on the results of these edits
and sends it to VisaNet.
6. V.I.P. logs the message and forwards it to the acquirer.
7. The acquirer logs the nancial response and forwards it to the merchant to complete
the transaction. The acquirer ensures that the response is successfully delivered. If the
cardholder did not enter a PIN earlier, the cardholder’s signature is required.

2.2 V.I.P. MESSAGE PROCESSING

When V.I.P. receives a message, it performs the following main functions:
• Message validation and preparation
• Message routing
• Stand-in processing (STIP), as required
• Response processing and logging
The following subsections describe these functions.

2.3 MESSAGE VALIDATION AND PREPARATION

V.I.P. checks the format and the content of each message it receives. Every message must
comply with the V.I.P. System message requirements for the message type. Also, each
processing station must use either BASE I or V.I.P. format specications, and all messages
from that station must comply with the requirements for that format’s specications.
V.I.P. Transaction Processing

If the message format is incorrect, V.I.P. returns it to the sender with the appropriate reject
code indicating why the message was rejected. If the message format is correct, V.I.P. performs
additional edits and prepares the message further. For instance, for Single Message System
(SMS) nancial messages, V.I.P. inserts a settlement date.

V.I.P. also performs member- or Visa-designated functions such as:

• Message enhancement
• Chip authentication
• PIN verication
• PIN translation
• Card Verication Value (CVV), Card Verication Value 2 (CVV2), and Integrated Circuit Card
CVV (iCVV) verication
• Cardholder Authentication Verication Value (CAVV) verication
• Currency conversion
• Reimbursement program screening
Once a message is validated, it is ready to be routed.

Refer to V.I.P. System Services for complete service information for the Cardholder
Authentication Verication Value (CAVV) Verication Service, PIN verication methods, the PIN
Verication Service (PVS), the Multicurrency Service, Visa Secure Electronic Commerce (VSEC)
With Veried by Visa (3-D Secure), and the card verication services.

2-2 Visa *Condential* V.I.P. System Overview 1 June 2005

 Chapter 2 Message Validation and Preparation

2.3.1 Message Formats

Issuers and acquirers format messages according to Visa standards. V.I.P. System message
formats and content are based on International Organisation for Standardisation (ISO) 8583
requirements. V.I.P. supports two message formats:

BASE I Message Format—This message format is only supported by BASE I.

V.I.P. Message Format—This format is supported both by BASE I and by SMS. This format
enables members to use both processing systems for their transactions depending on their
preferences. The V.I.P. message format provides enhanced processing capabilities to members
and to processors.
IMPORTANT
All centers, BASE I or SMS, that are connecting to the V.I.P. System for the rst time are required to use the V.I.P.
message format.

Refer to V.I.P. System BASE I Technical Specications and to the V.I.P. System SMS technical
specications manuals for details about message formats.

Each member designates which message format its processing centers use, and all of the
member’s messages must comply with that format. If message originators do not use the
same format used by message recipients, V.I.P. automatically makes any necessary eld
adjustments before delivering messages to their destinations.

2.3.2 V.I.P. Message Structure

Messages are bit-mapped so they transmit only appropriate data. Table 2-1 illustrates the
message elements that each bit-mapped message contains.

V.I.P. Transaction Processing

Table 2-1 V.I.P. Message Structure

Message Header Message Type Identier Bit Maps Data Fields

Message Header—The message header contains basic message identiers and routing
information along with message processing control codes and ags.

Message Type Identier—The message type identier species the message class and the
category of function. For instance, 0100 indicates an authorization request. All messages
contain a message type identier.

Bit Maps (one or more)—A bit map species which data elds are in a message. In addition
to a primary bit map, messages can include second and third bit maps. Each map contains
64-bit elds, corresponding to the number of possible elds in a message.

Data Fields—The data elds contain the information needed to process a message.

Differences between BASE I and V.I.P. message formats and their individual eld requirements
are detailed in V.I.P. System BASE I Technical Specications and in the V.I.P. System SMS
technical specications manuals.

1 June 2005 Visa *Condential* V.I.P. System Overview 2-3

 Chapter 2 Message Routing Basics

2.3.3 Message Matching

V.I.P. System transactions generally consist of pairs of messages: a request message followed
by a response message. The V.I.P. System compares information in key data elds to match
messages within a transaction.

Message sets provide the acquirer, the issuer, and V.I.P. with the means to link messages and
to control real-time account posting and settlement accumulator updating. For a cardholder
transaction, processors must use only the messages allowed in the associated transaction
set. V.I.P. uses message matching to prevent invalid messages within a transaction and to
ensure transaction integrity.

2.4 MESSAGE ROUTING BASICS

Message routing is an important function of the V.I.P. System. Routing refers to sending
messages between VisaNet and acquirer and issuer processing centers. Routing also refers
to sending a message to V.I.P. stand-in processing (STIP) for authorizing a transaction on an
issuer’s behalf.

2.4.1 Routing Messages

To route messages, V.I.P. uses member-supplied information stored in the BASE I and the SMS
system tables along with information in the message header, the message type identier,
and data elds. V.I.P. compares the message information to the applicable BIN (a range of
card numbers for a specic card program, such as Visa Classic) and to processing center
information stored in the system tables. This information includes:
• Account number.
• Card type.
V.I.P. Transaction Processing

• Source address.
• Destination address.
Visa assumes responsibility for routing a request to its proper destination. Acquirers do not
have to determine the destination of their authorization or nancial requests because V.I.P.
routes requests based on the account number in the message.
NOTE
In some cases, V.I.P. uses data other than the account number to determine message routing.

EXAMPLE
For SMS transactions, V.I.P. also uses the value in the network ID eld to route messages.

Issuers designate which of their issuer processing centers should receive the requests. The
issuer associates each issuer BIN with a specic issuer processing center. Optionally, issuers
can control which processing center receives requests for their cardholders by designating
multiple processing centers and by specifying the types of transactions that should be routed
to each processing center.

2.4.1.1 Routing Tables

V.I.P. provides routing table services both for BASE I and for SMS acquirers. The routing tables,
also referred to as BIN tables or as account range tables, are batch data les that list all card
prexes, prex lengths, and account number lengths. These tables contain records of the
relationships of issuers to account numbers, of issuers and acquirers to processing centers, of

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 Chapter 2 Message Routing Basics

processing centers to the VICs, and of processing centers to stations. The tables help V.I.P. and
acquirers make authorization routing decisions.

The current routing tables are:

• Visa
• Plus BIN Table
• Combined Visa/Plus
• Visa Electron
• Interlink
• Visa POS Debit Device
Members control routing by establishing appropriate relationships among card account number
ranges, types of transactions, and processing center stations. Factors used by BASE I and
by SMS for routing Visa, Visa Electron, Plus, and Interlink transactions, as well as those for
non-Visa card products, include:
• Routing and transit numbers.
• Network IDs.
• Card types.
• Account ranges.
• Processing centers.
• Acquirer and issuer stations.
• User preferences for priority routing and for PIN processing.
Acquirers use routing tables to determine which transactions should be sent to VisaNet for
processing. Entries in the Visa and the Plus BIN routing tables consist of whatever number of
digits that are required to identify a card range or a card portfolio. A routing table entry may be
simply a BIN (for instance, 412345), or may be a longer number for a Plus proprietary card

V.I.P. Transaction Processing

program (for instance, 504667214). Entries can be up to 12 digits.

Visa and Plus acquirers are required to use the Visa and Plus routing tables. Visa POS
acquirers in the U.S. region are required to use the Visa POS Debit Device routing table. For
more information about routing tables, refer to the Visa Operating Regulations. Members can
contact their Visa representatives to obtain the tables.

2.4.1.2 Internal Routing Services

In addition to basic routing functionality, Visa provides a variety of routing services that enable
issuers and acquirers to specify alternate routing for transactions with specied characteristics.
Most of the routing services V.I.P. provides are optional.
EXAMPLE
Issuers can designate an alternate path for routing particular transaction types. For instance, ATM transactions
can be routed differently from POS transactions; PIN transactions can be routed differently from non-PIN
transactions; exception transactions can be routed differently from authorizations and nancial transactions.

Additionally, V.I.P. can route transactions according to member specications using either
the Positive Cardholder Authorization Service (PCAS) or the Positive Authorization Capacity
Management (PACM) Service. These services route low-risk transactions to the V.I.P. stand-in
processor (STIP).

1 June 2005 Visa *Condential* V.I.P. System Overview 2-5

 Chapter 2 Stand-In Processing (STIP)

• PCAS routes transactions to the issuer or to STIP using issuer limit dollar amounts.
• PACM routes transactions to the issuer or to STIP primarily using a dynamic limit called the
diversion threshold. STIP determines this limit by comparing transaction volume to issuer
capacity.
Refer to V.I.P. System Services, Volume 1 and Volume 2, for an overview of routing services
and for complete descriptions about all routing services. Refer also to V.I.P. System BASE I
Processing Specications and to the V.I.P. System SMS processing specications manuals for
additional information about V.I.P. routing.

2.4.1.3 Gateways to Non-VisaNet Destinations

If the destination is a system or a network outside of VisaNet, V.I.P. uses Gateway Services to
reformat the message, if necessary, and to deliver it to the other system or network. Both
BASE I and SMS have connections, or gateways, to outside systems and networks. Gateway
Services route transactions through these gateways and return messages to members using
the same VisaNet connection point.

Refer to Part 2 of V.I.P. System Services, Volume 1, for detailed information about available
gateways and Gateway Services.

2.5 STAND-IN PROCESSING (STIP)

V.I.P. acts as a back-up processor when requested by issuers or when issuers are unavailable.
During this back-up processing, V.I.P. authorizes, declines, or refers transactions on the issuer’s
behalf. This function is referred to as stand-in processing, or STIP.

Issuers specify the stand-in processing parameters that V.I.P. is to use. Visa card issuers can
V.I.P. Transaction Processing

maintain les of cardholder data at the VisaNet Interchange Center (VIC) and can select the
limits that control which transactions can be approved in STIP. Other card programs processed
according to Visa rules are also eligible for STIP at the issuer’s discretion.

Whether a transaction is routed to the issuer or to STIP for an approval or decline decision
depends on the:
• Availability of the issuer at the time the transaction is being processed.
• Issuer-specied transaction processing parameters that reside in the system tables.
• Visa-mandated conditions for certain transaction types.
If the conditions of the cardholder account and the transaction require that the issuer, rather
than STIP, should make the nal authorization decision, STIP forwards the request message
to the issuer if the center is available. If the issuer is unavailable, STIP then processes the
transaction according to issuer-unavailable parameters.

V.I.P. usually creates advices for issuers to inform them of actions taken by STIP on their behalf.
Issuers may recover their advice data from V.I.P. Refer to V.I.P. System Services, Volume 2, for
information about both BASE I and SMS advice retrieval services.

Visa provides issuers with two, optional, issuer-or-STIP routing services that can assist in the
routing decision process:

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 Chapter 2 Stand-In Processing (STIP)

• Positive Authorization Capacity Management (PACM) Service—This BASE I and SMS service
routes authorization and nancial requests based on dollar amount thresholds and on
message trafc volumes.
• Positive Cardholder Authorization Service (PCAS)—This BASE I service routes authorization
requests to the issuer or to STIP according to a comprehensive set of risk control parameters
that includes dollar amount thresholds.
Refer to V.I.P. System Services, Volume 2, for information about these services.

2.5.1 BASE I STIP

BASE I stand-in processing (STIP) provides issuers with business functions that:
• Protect issuers from transaction volumes in excess of their processing capacity.
• Allow issuers to control authorization processing expenses by having STIP approve low-risk,
small-ticket transactions.
• Allow issuers to provide a high level of cardholder service during issuer-unavailable conditions
while still controlling risk.
The rst two functions pertain largely to issuer-available STIP. The third function applies largely to
issuer-unavailable STIP. The different circumstances and implications between issuer-available
and issuer-unavailable processing drive the rules for how transactions are processed.

When transactions fail issuer-available STIP processing, V.I.P. typically (at the issuers’ option)
forward-refers them to issuers for authorization decisions. In these cases, STIP forward-refers
transactions identied as having elevated risk to the issuer and approves transactions within
issuer-unavailable risk parameters. This approach minimizes negative cardholder experiences
resulting from false declines; that is, declining a “good” cardholder because of transaction
characteristics or because of cardholder spending that indicates heightened risk.

V.I.P. Transaction Processing

When the issuer is unavailable, STIP cannot forward-refer transactions to the issuer. Instead, it
must generate a response for the acquirer. This circumstance creates an elevated customer
service risk. Thus, for issuer-unavailable processing, issuers may choose to relax cardholder
spending-related risk controls for the sake of increasing customer service levels.

BASE I STIP performs a number of functional services to identify elevated risk. These services
include:
• Checking the CVV or the iCVV, CAVV, Dynamic Card Verication Value (dCVV), PIN, expiration
date, and BASE I Exception File.
• Validating the account number with the Luhn modulus-10 algorithm.
• Checking cardholder spending and activity, and the transaction amount.
BASE I STIP provides a wide variety of issuer options for determining which of these functions
are performed and how they are used.

Refer to V.I.P. System BASE I Processing Specications for more information about BASE I
STIP functions.

2.5.2 SMS STIP

SMS STIP protects issuer processing capacities and allows issuers to maintain high levels of
cardholder service during issuer-unavailable conditions. Risk control options that issuers
can specify for STIP include:

1 June 2005 Visa *Condential* V.I.P. System Overview 2-7

 Chapter 2 Response Processing

• Establishing transaction activity limits for card ranges and for individual cardholders.
• Checking the exception les for positive account limits (for instance, generous limits for VIP
[very important person] accounts) or negative account controls (for instance, card pick-up).
• Checking the CVV on the card’s magnetic stripe, the CVV or the iCVV on the card’s chip
image, the CAVV, or the dCVV.
• Checking PINs and monitoring the number of PIN retries.
• Validating the account number with the Luhn modulus-10 algorithm.
• Ensuring a valid card expiration date.
SMS STIP also handles issuer-generated messages including chargebacks, fee collections and
funds disbursements, and text messages for unavailable acquirers.

Refer to the V.I.P. System SMS processing specications manuals for more information about
SMS STIP functions.

2.6 RESPONSE PROCESSING

V.I.P. processes responses it receives from issuer centers before it returns the response
messages to the acquirer processing centers. The V.I.P. System:
• Checks the format and content of the response.
• Adds a code to indicate that the response came from the issuer center rather than from STIP.
• Drops the CVV- or iCVV-check result code from the message if it is present.
All responses processed by STIP also contain the code that species the source of the
response. The code indicates why the request was processed by STIP.

When V.I.P. sends a request to an issuer center, it keeps a copy of the request message and
waits the allowable period of time governed by the Visa Operating Regulations for a response.
V.I.P. Transaction Processing

If there is no response from the issuer by that time, V.I.P. discards the message and does not
send a response to the acquirer.

The Assured Transaction Response (ATR) is a function that ensures that timely responses are
returned to all requests for authorization and for reversal of Visa card transactions, and for
other card transactions. This function is optional for issuers.

With ATR, when V.I.P. sends a request to an issuer center, it keeps a copy of the request
message and sets a timer on receipt of the response. If the issuer processing center does not
respond within a specied number of seconds, V.I.P. reroutes the request to STIP for processing.

2.7 LOGGING
After V.I.P. validates the source of the message, the system logs the request. V.I.P. logs each
request and response message, along with certain system-processing information, in a system
log that it uses to prepare reports, to research problems, and to perform billing functions.

2.8 ADDITIONAL V.I.P. FUNCTIONS

In addition to message processing, V.I.P. performs additional functions to support members,
V.I.P., and VisaNet. These functions include:
• Managing the network.
• Managing system tables.
• Managing system databases.
• Reporting.
• Billing.

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 Chapter 2 Additional V.I.P. Functions

The following subsections describe these functions.

2.8.1 Managing the Network

V.I.P. supports several types of network management messages that control a center’s access
to the system. These messages enable a center to do the following:
• Sign on to and off from the system.
• Respond to test messages.
• Monitor response time and connectivity.
• Request advices, and optionally, accelerate advice delivery.
• Enter and exit Suppress Inquiry (SI) Mode. SI Mode is an issuer center station status that
blocks all routine incoming authorization and reversal requests during heavy trafc periods.
V.I.P. also creates administrative messages to alert center stations to abnormal system
conditions. All administrative messages require the attention of center staff. Upon receipt,
they should be routed to a console or to a terminal for immediate review.

Refer to V.I.P. System BASE I Processing Specications and to the V.I.P. System SMS processing
specications manuals for more information about network management functions.

2.8.2 Managing System Tables

V.I.P. maintains records of member- and Visa-established routing and processing rules that
apply to BINs, to processing centers, and to stations. V.I.P. stores these parameters in the
system tables (formerly called the system globals).

The system tables are maintained by Visa and are used by BASE I and by SMS. The set
of tables contains the following information:
• System parameters

V.I.P. Transaction Processing

• Lists of valid BINs
• Ranges of valid card numbers
• Center-selected processing parameters
• Member-selected processing parameters such as those an issuer species for stand-in
processing
• Station-specic parameters such as the types of messages processed (BASE I, SMS, or
both) and the message format used
For a detailed discussion of the system tables, refer to V.I.P. System BASE I Processing
Specications and to the V.I.P. System SMS processing specications manuals.

2.8.3 Managing System Databases

Members supply cardholder and merchant information to V.I.P. for the system to use when
it processes request messages. Members also add, change, and delete this information, as
needed, to reect business changes.

Members report any changes in account number ranges or in processing center designations
to Visa. This information is vital to the correct routing of messages. Members can both
update the les they maintain and request the data from records in those les. Depending
on the services selected by the member, V.I.P. can also update information in database les
automatically at the time of the transaction.

System databases include:

1 June 2005 Visa *Condential* V.I.P. System Overview 2-9

 Chapter 2 Additional V.I.P. Functions

• Cardholder Database (one for BASE I and one for SMS).

• Merchant Central File.
Issuer centers can update the Cardholder Database les. Acquirer centers can update the
Merchant Central File. Members can update les in any of the following ways:
• Using online le update messages for individual updates
• Transmitting a batch le of updates to the VIC through a VisaNet Access Point (VAP) that
supports Batch File Update Processing (BFUP)
• Shipping a Center Update Tape (CUP) with a batch of updates to the VIC
• Calling the Visa Service Center with requests for urgent updates
• Submitting the VisaNet Data Capture Prole
Issuer and acquirer centers use online messages to request individual records in any of their
les.

Refer to V.I.P. System BASE I Processing Specications and to the V.I.P. System SMS processing
specications manuals for more information about processing options, limits, and parameters.
Members can contact their Visa representatives to select available options and to establish
limits and parameters.

2.8.3.1 Cardholder Database Files

The Cardholder Database (CDB) comprises les maintained by Visa, by the issuer, or by
both, and resides at each VIC. Both BASE I and SMS have a Cardholder Database. The
CDB contains cardholder information used by STIP to authorize transactions and to verify
accounts, addresses, telecodes, and PINs. STIP uses the database to store advices until
they are retrieved by issuers.
V.I.P. Transaction Processing

The database also contains Positive Cardholder Authorization Service (PCAS) and Positive
Authorization Capacity Management (PACM) Service limits for individual cardholders.

While card issuers are responsible for creating and for maintaining several of the Cardholder
Database les, Visa is responsible for the integrity of these and all V.I.P. system les.

The Cardholder Database contains the following les:

Activity File—This Visa-generated le contains accumulated counts and amounts of

Visa-approved transactions and can include accumulated totals of issuer-approved transactions
as well as the count of consecutive invalid PIN entries accumulated by STIP.

Address Verication File—This issuer-created and -maintained le contains cardholder

billing address data.

Advice File—This Visa-generated le contains STIP processing records informing issuers of
STIP decisions made on their behalf for authorizations, for verication-only requests, or for
reversals.

Exception File—This issuer-created and -maintained le contains both positive and negative
action codes and other special instructions that indicate that the cardholder’s account
requires special attention; for instance, the exception le might note that STIP must decline
all transactions for a certain account. The le is also used to create Cardholder Recovery
Bulletins (CRBs). Refer to V.I.P. System Services, Volume 1, for information about CRBs and
about the optional CRB Service.

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 Chapter 2 Additional V.I.P. Functions

Certain Visa services, such as the Chargeback Reduction Service and those provided by the
Visa Travel Service Center, automatically add and update records in the exception le to ensure
that accounts are included in CRB listings when appropriate.

Full Authorization File—This issuer-created and -maintained le is used by the optional Full
Authorization Service and contains the cardholder’s daily or monthly open-to-use allowances
(spending limits) for cash and non-cash transactions. Refer to V.I.P. System Services,
Volume 2, for information about the Full Authorization Service.

PIN Verication File—This issuer-created and -maintained le is used by the optional PIN
Verication Service (PVS) and contains Visa PIN Verication Values (PVVs) and PIN Verication
Key Indexes (PVKIs) for issuers that use the Visa PVV method of PIN verication. Refer to V.I.P.
System Services, Volume 2, for information about the PIN Verication Service.

Risk Level File—This issuer-created and -maintained le is used for assigning and for
maintaining individual cardholder’s risk levels, daily spending limits, and merchant group
daily activity limits. Refer to Part 3 of V.I.P. System Services, Volume 1, for information about
risk management services.

Telecode Verication File—This issuer-created and -maintained le is used for telecode
verication and contains cardholders’ 4-digit telecodes for the VisaPhone Service. Refer to
V.I.P. System Services, Volume 2, for information about the VisaPhone Service.

Restricted Card List File—MasterCard generates and maintains this le. It contains
MasterCard account numbers requiring card pick-up. STIP uses this le for MasterCard
authorization requests when they cannot be delivered to issuers connected to the MasterCard
Banknet network.

V.I.P. Transaction Processing

For a detailed discussion of the Cardholder Database, refer to V.I.P. System BASE I Processing
Specications and to the V.I.P. System SMS processing specications manuals.

2.8.3.2 Merchant Central File

The Merchant Central File is a database created and maintained by acquirers. The data
in the Merchant Central File is used by the optional Merchant Central File Service (MCFS)
when acquirers want V.I.P. to insert more complete information in their authorization requests
(for instance, when they cannot supply merchant category codes). Merchant Central File
information overrides whatever information might be in the request when V.I.P. receives
it. The le includes:
• Merchant names, cities, country codes, and category codes for Visa card and MasterCard
transactions.
• ZIP and postal codes for MasterCard transactions.
• Terminal identiers for American Express and Discover transactions.
Refer to V.I.P. System BASE I Processing Specications and to the V.I.P. System SMS processing
specications manuals for more information about this database. Refer to the Merchant
Central File Service (MCFS) chapter of V.I.P. System Services, Volume 2, for information about
both the Merchant Central File and MCFS.

2.8.4 Reporting
The V.I.P. reporting components generate various reports available to issuers and to acquirers
by subscription. These reports describe V.I.P. processing activity and include information about

1 June 2005 Visa *Condential* V.I.P. System Overview 2-11

 Chapter 2 Additional V.I.P. Functions

cardholder listings in the exception and advice les. V.I.P. also produces POS and downgraded
transaction reports for acquirers. These reports provide individual transaction and summary
information. In addition, issuers and acquirers can subscribe to certain reports in raw data
le format.

Refer to V.I.P. System Reports for report information, including samples. For VisaNet Settlement
Service (VSS) report samples, refer to VisaNet Settlement Service (VSS) User’s Guide,
Volume 2, Reports.

2.8.4.1 BASE I Reports

The authorization component of the V.I.P. System produces several reports, including:
• Authorization Prole reports (APRs).
• Cardholder Database reports.
• Visa Point-of-Sale reports.
• Custom Payment Service (CPS) reports.
These reports are available to SMS acquirers and issuers by subscription. APRs and Visa
Point-of-Sale reports are available in raw data format.

2.8.4.2 Settlement Reports

Issuers and acquirers may also receive the following settlement reports:
• VisaNet Settlement Service (VSS) reports
• International Settlement Service reports
• National Net Settlement Service (NNSS) reports
For further information about settlement reports, refer to VisaNet Settlement Service (VSS)
V.I.P. Transaction Processing

User’s Guide, Volume 2, Reports.

2.8.4.3 Raw Data Records

SMS participants can choose to receive raw data records that detail member transaction
activity for the processing day. Raw data allows members to analyze and to customize their
data in the way that best suits their business needs. For more information about raw data, see
VisaNet Settlement Service (VSS) User’s Guide, Volume 2, Reports.

BASE I participants can also receive raw data. For details, refer to V.I.P. System BASE I
Technical Specications.

2.8.5 Billing
Visa assesses the fees and charges for V.I.P. processing on a monthly basis. V.I.P. produces
printed invoices that provide the line-item detail of costs for accessing the system, for routing
and processing messages, for maintaining les, and for creating reports. At the member’s
request, V.I.P. prepares invoices either for individual BINs or for an entire processing center,
which then bills its own users. Members can contact their Visa representatives to nd out
more about V.I.P. billing.

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 Chapter 3 V.I.P. System Services

The V.I.P. System provides many services beyond its basic functionality. Some services are
mandatory for all members or for members in specic Visa regions, but most services are
optional. Members can subscribe to optional V.I.P. services anytime.

Service enrollment processes differ for each region. Before any service implementation, each
member must test its systems and, in many cases, become certied by Visa to implement the
service. Visa representatives can explain the regional requirements and enrollment specics.

This chapter summarizes the services available to BASE I members, to Single Message System
(SMS) members, or to both. Refer to V.I.P. System Services, Volume 1 and Volume 2, for
complete service descriptions. See also V.I.P. System BASE I Processing Specications and the
V.I.P. System SMS processing specications manuals for information about services not yet
included in V.I.P. System Services.

3.1 SERVICE FUNCTIONAL GROUPS

V.I.P. services can be categorized into the following groups by service function:
• Routing Services
• Risk Management Services
• Visa Secure Electronic Commerce (VSEC) Services
• Chip Card Services
• Authorization Database Services
• Authorization Services
Table 3-1 lists V.I.P. services by functional group.

Table 3-1 V.I.P. Services by Functional Group

Functional Group Services

Routing ATM/POS Split Routing Service

Check Acceptance Service

Gateway Services

V.I.P. System Services

Integrated Debit Service

PIN/No-PIN Split Routing Service

Priority Routing Service

Visa Shortest Online Path (VSOP) Service

Risk Management Card Recovery Bulletin (CRB) Service

Fraud Reporting System (FRS)

Visa Issuer Fraud Detection (VIFD) Service

Visa Secure Electronic Visa Secure Electronic Commerce (VSEC) With Veried by Visa (3-D
Commerce (VSEC) Secure)

1 June 2005 Visa *Condential* V.I.P. System Overview 3-1

 Chapter 3 Service Functional Groups

Table 3-1 V.I.P. Services by Functional Group (continued)

Functional Group Services
Chip Card Visa Horizon Service

Visa Smart Debit/Smart Credit (VSDC) Service

Authorization Database Automatic Cardholder Database Update (Auto-CDB) Service

Merchant Central File Service (MCFS)

Authorization Account Verication Service

Address Verication Service (AVS)

Advice Retrieval Service—BASE I

Advice Retrieval Service—SMS

ATM Format Conversion Service

Card Verication Value (CVV) Service

Card Verication Value 2 (CVV2) Service

Cardholder Authentication Verication Value (CAVV)

Verication Service

Custom Payment Service (CPS)/ATM

Custom Payment Service (CPS)/POS

Deferred Clearing Advice File (DCAF) Service

Dynamic Card Verication Value (dCVV) Service

Dynamic Key Exchange (DKE) Service

Full Authorization Service

International Automated Referral Service (IARS)

Multicurrency Service
V.I.P. System Services

PIN Verication Service (PVS)

POS Check Service

Positive Authorization Capacity Management (PACM) Service

Positive Cardholder Authorization Service (PCAS)

Preauthorized Payment Cancellation Service (PPCS)

Status Check Service

VisaNet Cashback Service

VisaPhone Service

3-2 Visa *Condential* V.I.P. System Overview 1 June 2005

 Chapter 3 Routing Service Denitions

Table 3-1 V.I.P. Services by Functional Group (continued)

Functional Group Services
Additional Chargeback Reduction Service (CRS)

Visa check card II

ATM Processing Integration

3.2 ROUTING SERVICE DEFINITIONS

This section provides basic denitions of V.I.P. routing services. Refer to V.I.P. System Services,
Volume 1, for complete service descriptions.

3.2.1 ATM/POS Split Routing Service

The ATM/POS Split Routing Service enables BASE I and SMS issuers that process Visa, Visa
Electron, and Plus transactions to use separate processing centers for ATM transactions and
for POS transactions. This service offers the following options:

ATM Account-Type Split Routing—The ATM Account-Type Split Routing option is available for
BASE I and SMS issuers that process ATM transactions. Issuers can specify that VisaNet route
ATM transactions based on the account the cardholder selects when using a multipurpose card
at an ATM. Issuers can specify up to three endpoints: one for deposit accounts, one for credit
accounts, and one for universal and non-specied accounts.

Alternate Routing—With the Alternate Routing option, acquirers and issuers can designate
one or two alternate processing centers to handle exception and other back ofce transactions.
The alternate processing center may be connected to the SMS component of the V.I.P. System
or to the Visa BackOfce Adjustment System (BOAS).

Issuers can use these routing options separately or in combination.

3.2.2 Check Acceptance Service

The Check Acceptance Service allows merchants in the United States (U.S.) region to route
check approval requests through VisaNet to selected check acceptance vendors. One of ve
companies, Equifax Card Services (TeleCredit Los Angeles and TeleCredit Tampa), ETC Scan
(Deluxe Data Systems), JBS/NPC, State Street Bank, or TeleCheck, can approve a check
used at a merchant location through the Check Acceptance Service. The vendor guarantees

V.I.P. System Services

acceptance of the check by the drawee bank and assumes responsibility for collection if
the check is returned.

3.2.3 Gateway Services

Both the BASE I component and the SMS component of the V.I.P. System have connections,
or gateways, to various other systems and networks. Gateway Services enable acquirers to
obtain authorizations on non-Visa-brand transactions through the same VisaNet connections
they use for Visa transactions. With Gateway Services, acquirers and merchants can route
all terminal trafc to V.I.P., which then routes non-Visa-brand transactions to the appropriate
networks for responses. The service also enables issuers to use their V.I.P. System links to
receive requests from other networks or services.

3.2.4 Integrated Debit Service

The Integrated Debit Service enables merchants in the U.S. region to accept customer
payments made with debit cards and ATM cards bearing a national or regional debit

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 Chapter 3 Routing Service Denitions

point-of-sale (POS) mark. Merchants send transactions initiated with these cards (and
accessed with personal identication numbers [PINs]) to the V.I.P. System. The SMS
component of V.I.P. routes these transactions through the VisaNet Debit Gateway to the
appropriate direct-debit POS network for delivery to the issuer.

Routing options provide merchants with exibility in accessing the various debit POS networks,
which, in turn, route transactions to the issuers.

The Integrated Debit Service also supports Electronic Benets Transfer (EBT), a federally
sponsored program. EBT is a nationwide program of card-accessed, electronically delivered,
government-funded benets that are issued through a federal-state partnership. The primary
function of EBT, as it exists today, is the electronic delivery of food stamps and cash benets.

3.2.5 PIN/No-PIN Split Routing Service

The PIN/No-PIN Split Routing Service allows issuers to separate transactions requiring PIN
verication from those that do not and to route these transactions to two or more issuer
processing centers. The service offers the following options:
• PIN Routing option for routing all POS nancial transactions with PINs to SMS and all other
transactions to BASE I.
• The Alternate Routing option for separating original transactions and exception transactions.
Issuers can use these split routing options individually or in combination.

3.2.6 Priority Routing Service

The Priority Routing Service determines the destination of authorization, nancial, and reversal
requests based on the acquirer’s processing order preference. The service is available for
SMS acquirers.

To initiate the Priority Routing Service, acquirers specify network ID 0000 in the request,
allowing VisaNet to determine which network and card program rules apply based on the
account number and on acquirer-provided preferences.

The acquirer assigns processing priorities to each of its card programs. By setting up a
preferred processing path, acquirers can choose how a transaction that qualies for more
than one card program should be processed.

3.2.7 Visa Shortest Online Path (VSOP) Service

V.I.P. System Services

The Visa Shortest Online Path (VSOP) Service allows non-U.S. issuers that issue both Visa and
MasterCard card products to receive MasterCard authorization requests for purchase and cash
transactions acquired through VisaNet. This service foregoes the need to route MasterCard
requests to Banknet (the MasterCard processing network) before they go to the issuer.

The VSOP Service operates only when the issuer is available to authorize the MasterCard
transaction. Otherwise, V.I.P. routes the transaction to stand-in processing (STIP) or to
MasterCard through Gateway Services.

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 Chapter 3 Routing Service Availability

3.3 ROUTING SERVICE AVAILABILITY

Specic routing services are available to BASE I and SMS acquirers and issuers. Table 3-2 lists
the systems and products and the corresponding routing services available.

Table 3-2 Routing Service Availability

AVAILABLE FOR...
Routing Service Acquirer Issuer BASE I SMS Products
ATM/POS Split Routing Service Visa Electron, Interlink,
Plus, Visa
Check Acceptance Service Available for checks
Gateway Services Available for all product
types
Integrated Debit Service Available for all product
types
PIN/No-PIN Split Routing Service Visa Electron, Interlink,
Plus, Visa
Priority Routing Service Visa Electron, Interlink,
Plus ATM, Visa
Visa Shortest Online Path (VSOP) MasterCard
Service

3.4 RISK MANAGEMENT SERVICE DEFINITIONS

This section provides basic denitions of the fraud risk reduction services provided through
V.I.P. Refer to V.I.P. System Services, Volume 1, for complete service descriptions.

3.4.1 Card Recovery Bulletin (CRB) Service

The Card Recovery Bulletin (CRB) Service is an international risk control service that publishes
bulletins and card recovery les containing account numbers of cards reported as lost, stolen,
or misused. It publishes Card Recovery Bulletins (paper bulletins) for non-U.S. issuers and
acquirers, maintains card recovery les (including the CD-ROM bulletin) for most acquirers, and
merchant mailing les for all acquirers. The service also helps control fraud on below-oor-limit
transactions outside the U.S.

V.I.P. System Services

The CRB Service assures that cardholders are protected from fraudulent use of their lost
or stolen cards. It also supports chargeback rights of issuers, acquirers, merchants, and
cardholders.

BASE I and SMS issuers can list Visa account numbers in the BASE I Exception File, coded to
appear in specied bulletins and in pick-up les. The BASE I Exception File is the only source
of exception le input for the CRB. SMS issuer participants must list their accounts in both the
BASE I and SMS exception les so that the account listings are included in the CRB.

An issuer can choose to list an account number in one or more individual CRB regions, or in a
combination of individual regions plus one or more groups of regions. Visa acquirers specify
which regional bulletins go to which merchant locations, and which bulletins, pick-up les, or
both, they want sent to themselves or to their processing centers.

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 Chapter 3 Risk Management Service Availability

3.4.2 Fraud Reporting System (FRS)

The Fraud Reporting System (FRS) is available as a V.I.P. service to help members report, track,
and analyze fraudulent transactions. FRS consolidates fraud information, helping members
detect fraud patterns and reduce losses.

3.4.3 Visa Issuer Fraud Detection (VIFD) Service

The Visa Issuer Fraud Detection (VIFD) Service is an authorization scoring and reporting service
that utilizes advanced technologies, consisting of statistical models and neural networks, to
identify fraud patterns and to score individual transactions processed through VisaNet.

VIFD is designed to reduce issuer fraud within the U.S. region. When an authorization is
scored above a threshold established by the issuer, VIFD generates an alert for the account.
VIFD enables issuers to detect fraud much earlier than is normally possible with in-house
fraud detection systems.

3.5 RISK MANAGEMENT SERVICE AVAILABILITY

Specic risk management services are available to BASE I and SMS acquirers and issuers.
Table 3-3 lists the systems and the corresponding risk management services available.

Table 3-3 Risk Management Service Availability

AVAILABLE FOR...
Risk Management Service Acquirer Issuer BASE I SMS
Card Recovery Bulletin (CRB) Service
Fraud Reporting System (FRS)1
Visa Issuer Fraud Detection (VIFD) Service
1. FRS is available to BASE I participants through TC 40 BASE II records.

3.6 VISA SECURE ELECTRONIC COMMERCE (VSEC) SERVICE DEFINITION

This section gives a basic denition of the VSEC service provided through V.I.P. Refer to V.I.P.
System Services, Volume 1, for a complete service description.

3.6.1 Visa Secure Electronic Commerce (VSEC) With Veried by Visa (3-D Secure)
The Visa Secure Electronic Commerce (VSEC) initiative provides security for transactions
sent over the Internet and other open networks. Implemented as part of the VSEC initiative,
V.I.P. System Services

Visa has developed technology to authenticate the cardholder during an online purchase.
The authentication technology is called 3-D Secure; the authentication service available to
cardholders is referred to as Veried by Visa.

Veried by Visa gives cardholders control over card use for online purchases and provides
payment security that adds an extra level of protection both for consumers and for merchants.

Veried by Visa enables all parties in an electronic commerce (e-commerce) payment

transaction to transmit condential payment data and provides authentication that the buyer is
an authorized user of a particular account. Veried by Visa is a global program that supports
both magnetic stripe Visa cards and Visa Smart Debit/Smart Credit (VSDC) cards.

VisaNet validates the results of authentication during authorization. See the “Cardholder
Authentication Verication Value (CAVV) Verication Service” section of this chapter for more
information about the CAVV Verication Service.

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 Chapter 3 VSEC Service Availability

3.7 VSEC SERVICE AVAILABILITY

The VSEC service is available to BASE I and SMS acquirers and issuers. Table 3-4 lists the
systems and service availability.

Table 3-4 VSEC Service Availability

AVAILABLE FOR...
VSEC Service Acquirer Issuer BASE I SMS
Visa Secure Electronic Commerce (VSEC)
With Veried by Visa (3-D Secure)

3.8 CHIP CARD SERVICE DEFINITIONS

This section provides basic denitions of the chip card services provided through V.I.P. Refer to
V.I.P. System Services, Volume 1, for complete service descriptions.

3.8.1 Visa Horizon Service

The Visa Horizon Service enables cardholders to use a single-currency payment Visa Horizon
card, based on Chip Ofine Pre-Authorized Card (COPAC) and integrated-circuit technologies,
that contains preauthorized spending power for purchases or cash disbursements. Unlike
stored value cards, this spending power is linked to collateral funds that are held either in the
cardholder’s source account or in a separate “shadow account.” Funds are not deducted from
those collateral funds until nancial transactions have been successfully cleared and settled.

Cardholders initiate Visa Horizon transactions by inserting a Visa Horizon card in an appropriate
terminal and entering a PIN. Visa Horizon cards can also be used at Visa Smart Debit/Smart
Credit (VSDC) terminals displaying the Visa Horizon mark.

3.8.2 Visa Smart Debit/Smart Credit (VSDC) Service

The Visa Smart Debit/Smart Credit (VSDC) Service provides members with a safe and
controlled means to incorporate debit and credit functionality into chip cards. VSDC is a debit
or credit service that takes full advantage of the power of the microchip on a single card. VSDC
supports Visa, Visa Electron, and Plus card products.

The VSDC baseline product, the chip card, provides all debit and credit functions currently
available to a magnetic stripe product; it also has additional features that allow issuers to
customize their products to accommodate their market strategy and their customers’ needs.

V.I.P. System Services

Additionally, VSDC cards can be equipped for contactless transactions (proximity payment
transactions).

Whenever a cardholder uses a VSDC card at a chip-capable terminal, the interaction between
card and terminal provides new transaction security and functionality. Based on issuer-selected
features, the card and terminal interaction results in a payment transaction similar to that
performed with today’s magnetic stripe cards. However, with the VSDC Service, the card
and terminal interaction can provide a suite of optional risk control features. Issuers can
activate any or all of these features during the card personalization process when they put
account information on the chip.

3.9 CHIP CARD SERVICE AVAILABILITY

Specic chip card services are available to BASE I and SMS acquirers and issuers.

1 June 2005 Visa *Condential* V.I.P. System Overview 3-7

 Chapter 3 Authorization Database Service Denitions

Table 3-5 lists the systems and the corresponding chip card services available.

Table 3-5 Chip Card Service Availability

AVAILABLE FOR...
Chip Card Service Acquirer Issuer BASE I SMS
Visa Horizon Service
VSDC Service

3.10 AUTHORIZATION DATABASE SERVICE DEFINITIONS

This section provides basic denitions of V.I.P. services that members can use to update their
information in the two main V.I.P. system databases:
• Cardholder Database
• Merchant Central File
Chapter 2, V.I.P. Transaction Processing, discusses these two system database les. Refer to
V.I.P. System Services, Volume 2, for complete service descriptions.

3.10.1 Automatic Cardholder Database Update (Auto-CDB) Service

The Automatic Cardholder Database Update (Auto-CDB) Service enables BASE I and SMS
issuers to update the BASE I and SMS exception les, contained in the Cardholder Database,
as part of their authorization response messages. The BASE I and SMS exception les are
separate and are updated individually.

The Auto-CDB Service helps issuers prevent losses from problem accounts by improving the
accuracy of cardholder information available to V.I.P. for stand-in processing.

3.10.2 Merchant Central File Service (MCFS)

The Merchant Central File Service (MCFS) supplies information from the Merchant Central File,
a database created by and maintained by acquirers.

The Merchant Central File is a VIC-resident le that acquirers use to store BASE I authorization
or reversal request information that cannot otherwise be supplied by a terminal at the point of
sale or point of service (POS) because of device limitations.

MCFS adds the information from the Merchant Central File (if the data is available) before
V.I.P. System Services

forwarding the request to the issuer or to STIP.

3.11 AUTHORIZATION DATABASE SERVICE AVAILABILITY

Specic authorization database services are available to BASE I and SMS acquirers and issuers.
Table 3-6 lists the systems and the corresponding authorization database services available.

Table 3-6 Authorization Database Service Availability

AVAILABLE FOR...
Authorization Database Service Acquirer Issuer BASE I SMS
Automatic Cardholder Database Update
(Auto-CDB) Service
Merchant Central File Service (MCFS)

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 Chapter 3 Authorization Service Denitions

3.12 AUTHORIZATION SERVICE DEFINITIONS

This section provides basic denitions of V.I.P. authorization services. Refer to V.I.P. System
Services, Volume 2, for complete service descriptions.

3.12.1 Account Verication Service

The Account Verication Service enables merchants to request an account number verication
as an initial check for an estimated purchase.

Using an authorization request message, merchants can request:

• Account verication only, to perform an initial check for an estimated purchase.
• Account verication and authorization, to request authorization when the transaction takes
place at the POS.
The service replaces the manual process of checking paper Card Recovery Bulletins (CRBs).
Instead of using a paper bulletin, the merchant contacts its acquirer to initiate an account
verication request.

3.12.2 Address Verication Service (AVS)

The Address Verication Service (AVS) is an online Visa service that enables merchants
in all Visa regions to reduce fraud losses by verifying cardholders’ billing addresses for
card-not-present transactions.

AVS can be used for Visa, MasterCard, American Express, and Discover transactions.

3.12.3 Advice Retrieval Service—BASE I

The BASE I Advice Retrieval Service keeps issuers informed of stand-in authorizations,
reversals, and Cardholder Database le updates by allowing issuers to retrieve their advice
data from the BASE I advice le at their VisaNet Interchange Center (VIC).

Each VIC maintains a BASE I advice le, in which it stores BASE I STIP response records. Every
record contains information from the authorization or reversal request, the STIP response, and
the reason why STIP processed the request.

3.12.4 Advice Retrieval Service—SMS

The SMS Advice Retrieval Service keeps issuers informed of stand-in authorizations, reversals,
deferred clearing advices, and SMS exception le updates by allowing members to retrieve

V.I.P. System Services

their advice data from the SMS advice le at their VIC.

Each VIC maintains an SMS advice le in which it stores SMS STIP response records. Each
record contains information from the authorization or reversal request, the STIP response, and
the reason why STIP processed the request.

3.12.5 ATM Format Conversion Service

The ATM Format Conversion Service provides Visa and Visa Electron SMS issuers, including
those co-branded with Plus, with the option to receive eligible ATM transactions from
dual-message acquirers as full nancial messages.
NOTE
V.I.P. always delivers ATM transactions for proprietary cards with the PLUS mark to SMS issuers as full nancial
messages regardless of the method by which they were acquired.

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 Chapter 3 Authorization Service Denitions

3.12.6 Card Verication Value (CVV) Service

The Card Verication Value (CVV) Service is a POS and ATM risk control service that protects
issuers and acquirers from fraud losses associated with counterfeit Visa cards. The CVV
Service allows issuers to detect invalid cards by validating the CVV on the physical magnetic
stripe of the cards, and the CVV or the Integrated Chip Card card verication value (iCVV)
on the magnetic stripe image in the chip.

The CVV or iCVV is a unique value calculated from magnetic stripe data using a Data Encryption
Standard (DES) algorithm established by Visa. V.I.P. or the issuer can perform CVV or iCVV
calculations when both the issuer and the acquirer are participating in the service and the
magnetic stripe data is transmitted.

3.12.7 Card Verication Value 2 (CVV2) Service

The Card Verication Value 2 (CVV2) Service is a card verication tool designed to reduce fraud
losses on transactions when the card is not present, and in the Latin America and Caribbean
(LAC) region, in certain situations when the card is present.

Issuers must imprint a 3-digit security number (the CVV2) on the back of all new or reissued
Visa cards, in accordance with Visa Operating Regulations. Members can use the CVV2
number to validate that a genuine Visa card is present at the cardholder location during a
transaction. The CVV2 is calculated using a secure cryptographic process and a key known
only to the issuer and to Visa.

3.12.8 Cardholder Authentication Verication Value (CAVV) Verication Service

The Cardholder Authentication Verication Value (CAVV) Verication Service provides the
functionality to verify that the Cardholder Authentication Verication Value (CAVV) submitted
by an acquirer in a Veried by Visa (3-D Secure) authorization message matches the CAVV
generated by the Visa or by an issuer’s Access Control Server (ACS) during authentication.

The CAVV is a cryptographic value generated by the issuer and sent to the merchant during
the authentication process in a Veried by Visa transaction.

The CAVV Verication Service is part of a suite of services available through Veried by Visa.
Visa developed Veried by Visa to enhance the security and the integrity of Internet purchases
made using Visa cards. The service allows issuers to register cardholders for the service and to
V.I.P. System Services

authenticate the cardholder as the owner of the card account when an online purchase occurs
at a participating merchant location. See the “Visa Secure Electronic Commerce (VSEC) With
Veried by Visa (3-D Secure)” section of this manual for information about Veried by Visa.

3.12.9 Custom Payment Service (CPS)/ATM

Custom Payment Service (CPS)/ATM is an incentive program that provides accurate settlement
and improved management of the cardholder’s accounts through better matching of messages,
from authorization through clearing, using a unique transaction identier.

In addition, CPS/ATM ensures more timely delivery of clearing records by acquirers and reduces
exception item processing by improving transaction integrity and life-cycle control.

3.12.10 Custom Payment Service (CPS)/POS

Custom Payment Service (CPS)/POS is a series of payment services that are customized to
serve the needs of distinct merchant segments for point-of-sale (POS) transactions. CPS/POS

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 Chapter 3 Authorization Service Denitions

accommodates different merchant procedures, and decreases fraud losses and operating
expenses associated with each transaction. CPS/POS increases Visa member protability by
reducing member operating costs, improving risk management techniques, and increasing
member revenues through increased card usage.

CPS/POS transactions can be processed as dual messages through BASE I and BASE II.

3.12.11 Deferred Clearing Advice File (DCAF) Service

The Deferred Clearing Advice File (DCAF) Service allows members processing in a
single-message environment to receive original BASE II deferred clearing advices in bulk le
deliveries.

BASE II deferred clearing advices originate from dual-message acquirers that do not generate
online clearing messages. Without the DCAF Service, SMS members receive deferred clearing
advices online, one advice per station at a time. In certain cases, capacity problems can occur
due to the volume of deferred clearing advices.

To alleviate capacity and resource contention problems, the DCAF Service allows issuers to
receive deferred clearing advices in bulk les. Bulk le delivery uses network lines separate
from online station lines. This reduces issuers’ online host and network capacity requirements
and helps members manage receipt of large volumes of advices.

3.12.12 Dynamic Card Verication Value (dCVV) Service

The Dynamic Card Verication Value (dCVV) is the card verication scheme for contactless, or
proximity payment, transactions. dCVV data resides on track 2 of the magnetic stripe or, in
the case of chip cards, in the Track 2 Equivalent Data in the chip. A dCVV is generated each
time a contactless transaction is initiated; the value is inserted in the magnetic stripe data
forwarded to the acquirer, replacing any other card verication value data and overriding any
CVV2 that might also be present.

The dCVV Service is optional; It is considered to be an add-on to the basic CVV Service; thus,
participation in CVV is required prior to participation in the dCVV Service. The dCVV processing
options are similar to those for the CVV Service.

3.12.13 Dynamic Key Exchange (DKE) Service

The Dynamic Key Exchange (DKE) Service is an optional service that enables Single Message
System (SMS) members to change Data Encryption Standard (DES) cryptographic keys with

V.I.P. System Services

Visa through the use of online messages.

3.12.14 Full Authorization Service

Full Authorization Service is an extension of V.I.P. stand-in processing. This service allows
issuers to specify cardholder daily and monthly spending limits in addition to limits already
established for STIP. This ability to specify limits enables issuers to tightly control and track
total cardholder activity and authorizations against issuer-specied limits.

3.12.15 International Automated Referral Service (IARS)

The International Automated Referral Service (IARS) enables acquirers to reach any Visa issuer
promptly whenever the issuer needs more information from the acquirer before making an
authorization decision. IARS guarantees a response to every referral call, even when the issuer
is unavailable. This service helps reduce Visa sales losses caused by authorization delays.

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 Chapter 3 Authorization Service Denitions

3.12.16 Multicurrency Service

The Multicurrency Service allows members to authorize and to settle transactions in any
nominated currency. The service supports authorization, clearing, and settlement processing in
selected international currencies.

3.12.17 PIN Verication Service (PVS)

The PIN Verication Service (PVS) is a V.I.P. service that provides full-time or stand-in
verication of personal identication numbers (PINs) used for Visa and Plus ATM transactions,
for Visa point of service (POS), Visa Electron POS, and Interlink POS transactions, and for Visa
Smart Debit/Smart Credit (VSDC) transactions. A personal identication number is a secret
code that identies a cardholder at an ATM or a terminal. A PIN serves as an electronic
substitute for a cardholder’s signature.

At the issuer’s option, the V.I.P. System can verify PINs on behalf of the issuer center, at
all times or only when the center is unavailable. When V.I.P. veries PINs, it intercepts all
authorization requests containing PINs, veries the PINs, and passes the requests to the
issuers or to the V.I.P. stand-in processor (STIP), as appropriate, for authorization processing.

3.12.18 POS Check Service

The POS Check Service offers merchants the ability to accept consumer and business checks
as source documents and to convert the paper checks to electronic transactions at the point of
sale, and from mail, telephone, or electronic commerce merchants. As electronic transactions,
converted checks can be cleared and settled quickly and efciently. Merchants using this
service can realize the benets of cost and risk reduction for check payments. Participating
drawee nancial institutions, serving as online authorizing agents for their customers’ checks,
can clear and settle electronic debits quickly, increasing revenue opportunities and reducing
check processing costs.

3.12.19 Positive Authorization Capacity Management (PACM) Service

The Positive Authorization Capacity Management (PACM) Service helps BASE I and SMS
issuers maximize their authorization and full nancial message processing capacity.

PACM monitors the issuer’s transaction volume every 60 seconds. When the volume of
authorization and nancial request messages exceeds the issuer’s processing capacity, PACM
routes low-risk transactions to STIP for the next minute. PACM continues to balance volume
with capacity until the issuer is able to process all transactions.
V.I.P. System Services

3.12.20 Positive Cardholder Authorization Service (PCAS)

The Positive Cardholder Authorization Service (PCAS) is a comprehensive set of risk control
parameters available to BASE I issuers that determine whether an authorization request is
switched to the issuer or is processed by STIP.

If the transaction is routed to the issuer, the issuer provides the response. If the transaction is
routed to STIP, V.I.P. provides the response based on stand-in authorization options and on
PCAS processing limits. Issuers can choose from a variety of options that either increase
authorization risk control or customer service levels, or control authorization expenses. These
parameters are exible and can be customized by merchant type, cardholder risk level, and
cardholder spending.

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 Chapter 3 Authorization Service Availability

3.12.21 Preauthorized Payment Cancellation Service (PPCS)

The Preauthorized Payment Cancellation Service (PPCS) enables issuers to stop payments on
preauthorized payment transactions, such as those for recurring or installment payments.

Participating issuers place stop payment orders in the Portfolio File in the V.I.P. Cardholder
Database (CDB). When acquirers submit a preauthorized payment transaction, V.I.P. checks
the database and if it encounters a stop payment order for that account number, it declines
the request.

PPCS enables members to meet Federal Reserve Regulation E requirements, which govern
electronic funds transfers and provide U.S. cardholders with certain dispute rights for check
card transactions. Members that issue check cards must comply with the terms of those
regulations.

The Preauthorized Payment Cancellation Service (PPCS) can be used both by BASE I users
and by SMS users.

3.12.22 Status Check Service

A status check request is an authorization request for one unit of currency (such as one U.S.
dollar). Merchants use this type of authorization request to verify the customer’s account
status when the nal transaction amount is not yet known, such as when a customer checks
into a hotel. V.I.P. forwards status check requests directly to the issuer when the issuer is
available, bypassing STIP.

The Status Check Service allows merchants such as hotels, auto rental companies, the
U.S. VisaPhone program, and the Global Customer Assistance Service (GCAS), to receive
authorizations without the issuer reducing cardholders’ open-to-buy amounts. The Status
Check Service is also available for automated fuel dispenser merchants.

3.12.23 VisaNet Cashback Service

The VisaNet Cashback Service is a domestic service available as an option to participating
Visa regions for their issuers, acquirers, and merchants on all Visa Flag, Visa Electron, and
Visa Horizon products. Cashback is dened as cash given to the cardholder at the point
of sale when a purchase is made.

Acquirers and issuers must be certied to participate in the service. Participating regions and
countries within those regions establish maximum cashback amounts.

V.I.P. System Services

3.12.24 VisaPhone Service
The VisaPhone Service allows cardholders to use their Visa cards as calling cards while
traveling. VisaPhone calls are automatically billed to the cardholder’s Visa account.

3.13 AUTHORIZATION SERVICE AVAILABILITY

Specic authorization services are available to BASE I and to SMS acquirers and issuers.

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 Chapter 3 Additional Service Denitions

Table 3-7 lists the systems and the corresponding authorization services available.

Table 3-7 Authorization Service Availability

AVAILABLE FOR...
Authorization Service Acquirer Issuer BASE I SMS
Account Verication Service
Address Verication Service (AVS)
Advice Retrieval Service—BASE I
Advice Retrieval Service—SMS
ATM Format Conversion Service
Card Verication Value (CVV) Service
Card Verication Value 2 (CVV2) Service
Cardholder Authentication Verication Value (CAVV)
Verication Service
Custom Payment Service (CPS)/ATM
Custom Payment Service (CPS)/POS
Deferred Clearing Advice File (DCAF) Service
Dynamic Key Exchange (DKE) Service
Dynamic Card Verication Value (dCVV) Service
Full Authorization Service
International Automated Referral Service (IARS)
Multicurrency Service
PIN Verication Service (PVS)
POS Check Service
Positive Authorization Capacity Management
(PACM) Service
Positive Cardholder Authorization Service (PCAS)
Preauthorized Payment Cancellation Service
V.I.P. System Services

(PPCS)
Status Check Service
VisaNet Cashback Service
VisaPhone Service

3.14 ADDITIONAL SERVICE DEFINITIONS

This section provides basic denitions of additional services available through V.I.P. Refer to
V.I.P. System BASE I Processing Specications and to the V.I.P. SMS processing specications
manuals for more information. These services will be documented in future updates of V.I.P.
System Services, if appropriate.

3.14.1 Chargeback Reduction Service (CRS)

The VisaNet Chargeback Reduction Service (CRS) is designed to help:

3-14 Visa *Condential* V.I.P. System Overview 1 June 2005

 Chapter 3 Additional Service Availability

• Reduce member costs by eliminating unnecessary exception items (chargebacks, copy

requests, and representments).
• Improve the accuracy and the timeliness of valid exception transactions.
CRS applies to Visa and Visa Electron POS transactions only, and not to ATM or Interlink
transactions.

3.14.2 Visa Check Card II

Visa check card II is a U.S.-domestic service that allows a cardholder to use a debit account
for POS and ATM transactions. Visa check card II transactions can be signature- or PIN-based,
and can include cash back for acquirers participating in the cashback program.

Issuers must establish a separate BIN for Visa check card II accounts and must support
PIN processing as well as cashback transactions. PIN and cashback processing support are
optional for acquirers.

3.14.3 ATM Processing Integration

SMS participants that want to format and process all ATM transactions without distinguishing
between Visa ATM and Plus ATM transactions can do so by changing the coding for specic
elds. For more information, refer to V.I.P. System International SMS ATM Processing
Specications or to V.I.P. System SMS Processing Specications (U.S.).

3.15 ADDITIONAL SERVICE AVAILABILITY

Specic additional services are available to BASE I and to SMS acquirers and issuers.
Table 3-8 lists the systems and the corresponding additional services available. These services
will be documented in future updates of V.I.P. System Services, if appropriate.

Table 3-8 Additional Service Availability

AVAILABLE FOR...
Additional Service Acquirer Issuer BASE I SMS
Chargeback Reduction Service (CRS)
Visa Check Card II
ATM Processing Integration

V.I.P. System Services

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 THIS PAGE INTENTIONALLY LEFT BLANK.
V.I.P. System Services
 Chapter 4 Acquirer and Issuer Responsibilities

This chapter outlines the responsibilities and options for acquirers and issuers that want to
connect to the V.I.P. System. All members must rst establish a processing center. Each
processing center must then fulll the responsibilities specic to acquirers and to issuers.

4.1 ESTABLISHING PROCESSING CENTERS

Acquirers and issuers must establish an in-house processing center or designate another center
or third-party processor to perform the necessary processing functions. The processing center
needs to have the systems necessary to supply merchant support services, cardholder support
services, or both. Support services include the ability to communicate with the merchant sites
and with cardholders, as well as with V.I.P., at the VisaNet Interchange Center (VIC).

4.1.1 Network Stations

A single processing center can have any number of physical network stations in VisaNet,
based on volume and on business needs.

Acquirers and issuers can establish multiple network stations to:

• Handle a high volume of trafc.

Acquirer and Issuer Responsibilities

• Process BASE I and Single Message System (SMS) trafc separately.
• Accommodate multiple acquirer business locations.
The following examples describe situations in which multiple business locations are necessary.
EXAMPLE
An acquirer or an issuer could operate multiple in-house stations at one processing center.

EXAMPLE
An issuer could operate an in-house center with one or more stations to process its cardholders’ purchase
transactions and could contract with another center to handle its ATM business with personal identication
numbers (PINs).

EXAMPLE
An acquirer could sponsor a major merchant center with one or more stations, and could operate an in-house
center with one or more stations to serve its other merchants and its own business locations.

EXAMPLE
An acquirer or an issuer could operate one or more in-house stations at each of multiple centers.

For more information about network stations, refer to About This Manual for a list of VisaNet
Access Point (VAP) documents.

4.1.2 V.I.P. Message Support

The processing center must be capable of generating and of receiving all types of V.I.P.
messages necessary for the card processing it performs. It must establish access to V.I.P.,
update system les at the VIC, and provide full message support.

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 Chapter 4 Establishing Processing Centers

Message support includes the following:

• The ability to generate the appropriate type of message for the function desired.
• The ability to receive all applicable incoming messages.
• The ability to supply data required in the V.I.P. request when it is not available from the
point of sale or point of service (POS). Acquirer processing centers optionally can use the
Merchant Central File Service (MCFS) to perform this task.
• The ability to manage all of the messages related to any given customer transaction. This
management is critical to V.I.P. processing. Acquirers and issuers must avoid duplicate
postings and must accurately calculate settlement totals.
• Support for any optional system service or feature used, for instance, the Full Authorization
Service or the Merchant Central File Service (MCFS). Refer to V.I.P. System Services for
details of individual service requirements.
• Downtime procedures and appropriate recovery measures.
The V.I.P. message format provides enhanced processing capabilities to members and to
processors. All centers, BASE I or SMS, that are connecting to the V.I.P. System for the rst
time are required to use the V.I.P. message format.

Refer to V.I.P. System BASE I Technical Specications and to the V.I.P. System SMS technical
specications manuals for details about message formats.
Acquirer and Issuer Responsibilities

4.1.3 Testing and Certication

Visa must test and certify centers’ message processing capabilities before they can use the
V.I.P. System. During the testing and certication process, the processing center sends and
receives test messages. Visa monitors the transactions to ensure that the processing center is
able to process all message types correctly. Members can contact their Visa representatives
for complete information about testing and certication.

4.1.4 Network Management

Processing centers must be able to control and to support the following:
• Center system status. When the center’s authorization system is down, it must sign off
from VisaNet. If the center has a front-end processor and that processor is down, it must
sign off from VisaNet.
• Test messages.
• Advice Recovery mode.
• Other applicable network-related functions, such as BASE I Suppress Inquiry (SI) mode.
For additional information, refer to V.I.P. System BASE I Processing Specications and to the
V.I.P. System SMS processing specications manuals.

4.1.5 SMS Reconciliation and Settlement

The V.I.P. System automatically generates reconciliation advices for SMS members. These
advices must be received by Visa POS, Visa Electron, Interlink, and ATM acquirers, and also
by Visa POS and Interlink issuers.

Processing centers should be able to accumulate settlement totals, which are the gross values
of transactions processed. If the center processes for several institutions, it should also be
able to allocate settlement totals to those institutions.

Processing centers should also be able to nd and to resolve settlement discrepancies.
Visa assumes that V.I.P. System totals are valid unless disproved by the processing center.

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 Chapter 4 Acquirer Processing Center Requirements

Processing centers can use the detailed activity reports to trace transactions and to resolve
discrepancies.

In addition, if acquirers or issuers want to use SMS processing, they must make the following
decisions:
• Acquirers that participate in multiple networks must decide whether to use the Priority Routing
Service. To use the Priority Routing Service, they must establish a network processing priority
list for Visa. Refer to V.I.P. System Services, Volume 1, for information about this V.I.P. service.
• Whether to act as a settlement entity or to designate one. A settlement entity is the clearing
agent that establishes an account for funds transfer. This account can be established at
the transfer agent used by SMS for settlement or at any institution accessible through
the Federal Reserve wire transfer system.
When acting as a settlement entity and also sponsoring another institution or major
merchant, the acquirer is responsible for allocating funds transfer totals. VisaNet provides
settlement reports at various levels for control and for nancial accounting but only transfers
funds at the settlement entity level. Refer to V.I.P. System Reports for a list of available
reports and report samples.
• The level of settlement reporting they want from VisaNet.
Refer to the V.I.P. System SMS processing specications manuals for reconciliation and
settlement information.

Acquirer and Issuer Responsibilities

For further information about settlement considerations, refer to the BASE II and VisaNet
Settlement Service (VSS) documents listed in About This Manual.

4.2 ACQUIRER PROCESSING CENTER REQUIREMENTS

The following requirements apply to acquirer processing centers that want to implement V.I.P.
card transaction processing:
• POS connections and procedures
• PIN security
• Response procedures
• Merchant Central File management
• Follow-up procedures and processing
• Other responsibilities
The following subsections explain these requirements.

4.2.1 POS Connections and Procedures

The processing center must establish a means of communication between itself and all of
the acquirer’s points of sale and points of service. To facilitate communication, processing
centers install electronic terminals at points of service or provide phone authorization service
to merchant sites that only require authorization processing.

Setting up communications facilities involves:

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 Chapter 4 Acquirer Processing Center Requirements

• Establishing and maintaining a merchant network, an ATM network, or both, if applicable.

This step is required for most BASE I acquirer centers and for all SMS acquirer centers.
Acquirer centers are responsible for providing and for maintaining:
- POS devices.
- Communications facilities of the network.
- Merchant operating procedures.
- Capability to support the request and response messages to and from the POS location.
• Arranging phone service and authorization support for merchant sites and for branch ofces,
if applicable. This step is required for those BASE I acquirer centers that serve merchant
sites without electronic terminals or that provide this service as backup to their network
service. Acquirers may choose to contract this type of service from an outside entity.
When acquirers provide phone authorization service, the acquirer centers are responsible for
authorization staff that can:
- Take calls requesting approvals of card transactions.
- Make provisions for entering those requests into their own card processing systems.
• Establishing a card processing system that can accept and can respond to requests from the
POS network, from the ATM network, or from both, or establishing an in-house authorization
center.
In addition, acquirers must establish POS procedures using merchant agreements. These
Acquirer and Issuer Responsibilities

agreements must determine the following:

• The rules and the parameters for card acceptance, such as merchant oor limits.
• Processing charges and merchant discounts.
• Authorization procedures, both for normal processing and for when the connection with V.I.P.
cannot be made or when the processing center is down.
• Chargeback, returned item, and representment procedures.
• Procedures for merchant settlement.
Acquirers must provide any necessary merchant training on procedures and guidelines for
handling card transactions established in merchant agreements.

4.2.2 PIN Security

Acquirer centers that process transactions with PINs must provide network security between
POS and ATM locations and their own card processing system. Centers must comply with Visa
rules for the security of PINs in requests they send to the VIC.

Refer to V.I.P. System BASE I Processing Specications and to the V.I.P. System SMS
processing specications manuals for system-specic information about PINs and PIN security
requirements. Refer to the Payment Technology Standards Manual for complete regulations
governing PINs.

4.2.3 Response Procedures

Acquirer centers must be able to convert V.I.P. responses into the response messages or the
terminal displays needed at the POS or at the ATM. When centers convert responses according
to the specications required by the POS or by the ATM, they must not change the meaning
of the issuers’ responses.

Acquirer centers must establish procedures to handle non-routine responses from issuers,
for instance, BASE I referrals or Interlink partial approvals.

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 Chapter 4 Issuer Processing Center Requirements

4.2.4 Merchant Central File Management

Acquirer centers wanting to use the Merchant Central File Service (MCFS) must establish the
policies and procedures necessary to maintain its entries in the Merchant Central File at the
VIC. This le management involves establishing the controls necessary to ensure data accuracy
and the procedures for conveying updates to the VIC. Refer to V.I.P. System Services, Volume 2,
for a description of the Merchant Central File and of MCFS.

4.2.5 Follow-Up Procedures and Processing

Acquirer centers must establish policies on time-out values. They must allow an adequate time
for issuer centers to respond but need to be responsive to the time-out demands of their own
electronic terminals and ATMs. If the response to a request times out:
• BASE I acquirer centers must send a repeat of the request.
• SMS acquirer centers must reverse the request and send a new request with new key data.
Refer to V.I.P. System BASE I Technical Specications and to the V.I.P. System SMS technical
specications manuals for rules for the use of repeats.

Acquirer centers must support reversal messages.

• BASE I centers use reversals to cancel previously approved transactions.
• SMS centers must use reversals to cancel customer transactions and to handle timed-out
requests. They must also be prepared to receive reversal advices from SMS. When an

Acquirer and Issuer Responsibilities

approval response cannot be delivered to an acquirer, SMS generates a reversal advice. In
this case, SMS generates a reversal request for the issuer and generates a reversal advice
for the acquirer.
Acquirer centers must establish policies and procedures for processing chargebacks and
representments, as well as for adjustments for merchandise returns, for failures at ATMs,
and for other back ofce corrections. Acquirer centers must also establish procedures for
complying with requests for originals and for copies of sales drafts.

In addition, BASE I acquirer centers must:

• Support Visa and Plus transactions with BASE II batch transaction records if they support
these products.
• Generate ATM conrmation messages (non-U.S. regions only), as required by the Visa
Operating Regulations.
SMS acquirer centers also must support chargebacks, representments, adjustments, and
copy requests using SMS online messages.

4.2.6 Other Responsibilities

Acquirer centers are also generally responsible for various other tasks external to V.I.P.
processing. Examples include:
• Processing merchant deposits after BASE I processing.
• Maintaining merchant accounts.
• Managing acquirer-to-merchant settlement.
For a detailed description of acquirer responsibilities, see V.I.P. System BASE I Processing
Specications and the V.I.P. System SMS processing specications manuals.

4.3 ISSUER PROCESSING CENTER REQUIREMENTS

The following requirements apply to issuer processing centers that want to implement V.I.P.
card transaction processing:

1 June 2005 Visa *Condential* V.I.P. System Overview 4-5

 Chapter 4 Issuer Processing Center Requirements

• Transaction authorization
• Cardholder Database management
• PIN security
• Coordination with Visa
• Response procedures
• Follow-up procedures and processing
• Other responsibilities
The following subsections explain these requirements.

4.3.1 Transaction Authorization

Issuers must establish policies for making authorization decisions and for keeping cardholder
records, including specications for using V.I.P. stand-in processing (STIP).

An issuer processing center must provide authorization decisions for its cardholders’
transactions during normal system processing availability and during downtime. Authorization
processing normally involves a computer authorization system with les that provide
open-to-buy and account balance totals for each cardholder account.

Accordingly, issuer centers are responsible for maintaining their own records of:
• Cardholders’ credit limits.
• Account balances.
Acquirer and Issuer Responsibilities

• Card restrictions.
• Card statuses, such as:
- Lost
- Stolen
- Fraudulent
- Pick-up
Issuer centers must also maintain the cardholder records kept in the les at the VIC used for
STIP functions.

4.3.2 Cardholder Database Management

If an issuer center uses any of the STIP authorization services, it must establish the policies
and procedures necessary to maintain its Cardholder Database les at the VIC. Procedures
include establishing the controls necessary to ensure the accuracy of cardholder statuses and
data plus the methods for conveying updates to the VIC. Refer to V.I.P. System Services,
Volume 2, for a description of the Automatic Cardholder Database Update (Auto-CDB) Service,
which enables issuers to update exception les in response messages.

4.3.3 PIN Security

The issuer processing center is responsible for the method of PIN generation and verication
and the rules for PIN usage. Visa issuers can optionally use the PIN Verication Service (PVS)
to satisfy this requirement. Refer to V.I.P. System Services, Volume 2, for a description of PVS.

Refer to V.I.P. System BASE I Processing Specications and to the V.I.P. System SMS
processing specications manuals for system-specic information about PINs and PIN security
requirements. Refer to the Payment Technology Standards Manual for complete regulations
governing PINs.

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 Chapter 4 Issuer Processing Center Requirements

4.3.4 Coordination With Visa

The issuer center or the issuer itself must provide Visa with all of the processing parameters
that the V.I.P. System is to use for the issuer’s cardholders. These parameters include those
that determine:
• Routing of requests.
• Verication of PINs and Card Verication Values (CVVs and iCVVs) at the VIC.
• STIP authorization decisions.
Issuer centers must establish procedures for notifying Visa, well in advance, whenever any
processing requirements or parameters change.

4.3.5 Response Procedures

Issuer centers must be able to respond to requests within a reasonable time frame. Regions
establish Automated Response Time (ATR) time limits. The limits vary by region and by card
program.

If the issuer does not respond to a request or to a reversal within the established ATR limit,
V.I.P. routes the request or the reversal to STIP. Upon receiving the request, STIP then provides
the authorization decision on behalf of the issuer center. If an SMS issuer does not respond to
an SMS acquirer-generated advice within the ATR limit, STIP responds for the issuer center and
stores the advice for later recovery.

Acquirer and Issuer Responsibilities

4.3.6 Follow-Up Procedures and Processing
Issuer centers must be able to receive and to appropriately process repeats, second
submissions, or both, of the same customer transaction. They must also receive and process
reversals.

SMS issuer centers must also provide the following, depending on the card products they
choose to process:
• Support for transaction and reversal advices. Advices can be generated by STIP, by SMS,
and by BASE II.
• Support for adjustments and for merchandise returns.
• Chargeback procedures and support for chargeback messages.
• Support for representments.
• Other program-unique functions, such as the downtime resubmissions of Interlink
transactions.
BASE I issuer centers handle such functions through BASE II or through similar outside systems.

SMS issuer centers need a high level of transaction control to ensure that all of the messages
related to any one customer transaction are properly tracked and processed. While SMS
checks transaction consistency, issuer centers have ultimate responsibility for validating
incoming messages. For instance, if a merchandise return occurs several days after the
original purchase, SMS cannot check the adjustment message against the original request.
This kind of checking must be implemented by the issuer center.

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 Chapter 4 Issuer Processing Center Requirements

Issuer centers must have procedures in place for responding to cardholder requests for copies
or for originals of disputed sales drafts.
• BASE I centers must handle these requests through BASE II or through similar outside
systems.
• SMS centers must support SMS copy request messages.

4.3.7 Other Responsibilities

In addition, issuer processing centers are also responsible for:
• The rules and the fees for card usage.
• The method of CVV or iCVV verication, if any, for Visa transactions. Visa issuers can
optionally use the Card Verication Value (CVV) Service to satisfy this requirement. Refer to
V.I.P. System Services, Volume 2, for a description of the CVV Service.
• Posting to cardholder accounts and preparing cardholder invoices.
• Lost or stolen card reporting and other fraud control methods.
• Determining their policy for address verication of mail and telephone order and airline
transactions. Issuers can optionally use the Address Verication Service (AVS) to satisfy this
requirement. Refer to V.I.P. System Services, Volume 2, for a description of AVS.
Issuer centers may also be responsible for other tasks at the request of the issuer, such as
issuing cards (with PIN Verication Values [PVVs] and CVVs or iCVVs, as applicable), issuing
PINs, or posting transactions settled through BASE II.
Acquirer and Issuer Responsibilities

4-8 Visa *Condential* V.I.P. System Overview 1 June 2005

 Appendix A Transaction Types

Most transactions are initiated by cardholders at an ATM or at the point of sale; other
transactions are initiated by merchants, by acquirers, or by issuers. Some transactions are
system-generated; others are initiated during issuer or acquirer back ofce processing.

Table A-1 lists V.I.P. nancial transactions. A check mark in the BASE I or SMS column
indicates that the transaction type is available for processing under BASE I, under SMS, or
under both. The following section further describes V.I.P. transactions.

Table A-1 V.I.P. Transaction Types

Transaction Type BASE I SMS

Cardholder Transactions
Authorization or Verication Request
ATM Cash Disbursement
Manual Cash Disbursement
Purchase
• Purchase With Cashback
• Quasi-Cash
• Key-Entered Purchase
• Scrip
• Purchase With Address Verication
• Recurring Payment
• Incremental Authorization
• Bill Payment
• Proximity Payment
Deferred Clearing Purchase
Below-Floor-Limit Purchase
Preauthorization

Transaction Types
Merchandise Return
Balance Inquiry
Address Verication Only
Merchant-Authorized Transactions
Store-and-Forward
Paper Sales Draft (Online Financial)
Resubmission
System-Generated Transactions
Reversal
Cash Disbursement Adjustment

1 June 2005 Visa *Condential* V.I.P. System Overview A-1

 Appendix A Cardholder Transactions

Table A-1 V.I.P. Transaction Types (continued)

Transaction Type BASE I SMS
Exception Transactions
Adjustment
Good-Faith Collection
Chargeback
Chargeback Reversal
Representment
Fee-Related Transactions
Acquirer-Initiated Fee Collection/Funds Disbursement
Issuer-Initiated Fee Collection/Funds Disbursement
Reconciliation Transactions
Reconciliation Request/Response
File Maintenance Transactions
File Update or Inquiry Request
Administrative Transactions
Card Capture Notication
Free Text Message
Copy Request
Online Fraud Reporting
Network Management Transactions
Network Management Request/Response

A.1 CARDHOLDER TRANSACTIONS

The following section summarizes the types of cardholder transactions.

Authorization or Verication Request—Acquirers use this transaction to request

authorization of a transaction or to verify account or address information.

ATM Cash Disbursement—This transaction is used for cash disbursements from automated
teller machines (ATMs).
Transaction Types

Manual Cash Disbursement—A manual cash disbursement (also called manual cash) is
a transaction with which the cardholder obtains cash in a face-to-face environment. It is
available for Visa POS and for Visa Electron.

A-2 Visa *Condential* V.I.P. System Overview 1 June 2005

 Appendix A Cardholder Transactions

Purchase—This transaction type includes the basic purchase transaction as well as the
following variations:
• Purchase With Cashback—This transaction is a variation of the purchase transaction that
permits the cardholder to obtain cash in addition to goods or services.
• Quasi-Cash—This transaction is a variation of the purchase transaction, used for the
purchase of items that are directly convertible to cash, such as gaming chips and money
orders. It is available for Visa POS and for Visa Electron.
• Key-Entered Purchase—This transaction is a variation of the purchase transaction, used only
for Visa POS transactions as allowed by Visa Operating Regulations when the magnetic
stripe on the card is not readable.
• Scrip (Interlink only)—Scrip is a paper receipt that can be exchanged by the bearer for goods
or services combined with cash, as specied by the merchant. These transactions are used
by United States (U.S.) merchants with self-service terminals that dispense scrip. Scrip
transactions are available only for Interlink acquirers in the U.S. region. Scrip transactions
must be supported by Interlink issuers outside of the U.S. region for the convenience of their
cardholders when they are in the U.S. region, but they are not offered to acquirers outside
the United States.
• Purchase With Address Verication—This transaction is used by Visa merchants such as
direct marketing rms and airlines to verify a cardholder’s address as part of a purchase
request.
• Recurring Payment—This transaction is one that occurs on a periodic basis per agreement
between cardholder and merchant for payments of goods and services such as utility bills.
The initial transaction can occur in card-present or card-not-present (mail order, telephone
order, and electronic commerce) environments. Subsequent, or recurring, transactions are
automatically initiated by the merchant without the cardholder being notied beforehand or
necessarily being present.
• Incremental Authorization—This transaction is initiated by certain merchants, such as hotels
and car rental companies. It includes an estimated amount that may vary signicantly
from the nal transaction amount. In these instances, supplemental, or incremental,
authorizations or a single authorization reversal may be necessary.
• Bill Payment—This transaction enables consumer and commercial cardholders to pay bills.
Bill payment supports several types of payments, including one-time payments, recurring
payments, and installment payments.
• Proximity Payment—This transaction is contactless. It involves a smart card that can pass
its cardholder data to a terminal using wireless technology such as RF or infrared. Other

Transaction Types
than how the transaction is initiated, VisaNet processes them as if they were magnetic
stripe swiped transactions.
Deferred Clearing Purchase—This transaction is used by merchants such as hotels and
car rental agencies when the purchase amount is not known at the time a transaction is
authorized. This transaction may be preceded by an authorization request. The message used
to convey deferred clearing information is a deferred clearing advice.

Below-Floor-Limit Purchase—This transaction is used by Visa merchants when the

transaction amount is below the oor limit. The merchant oor limit is an amount limit
set by the acquirer (subject to operating regulation maximums) that determines if VisaNet
authorization is needed to complete a transaction. Because below-oor-limit transactions need
not be authorized, this transaction cannot be declined. This transaction is available only for
Visa POS. It is not available for Visa Electron.

1 June 2005 Visa *Condential* V.I.P. System Overview A-3

 Appendix A Merchant-Authorized Transactions

Preauthorization (Interlink only)—A preauthorization is designed for merchant locations such

as gas stations where the purchase amount is not known at the time the transaction is initiated.
Preauthorizations consist of an initial request message followed by a completion message. The
transaction must be completed within two hours. The merchant is guaranteed payment if:
• The preauthorization completion message is received within two hours of the corresponding
approved preauthorization request message.
• The amount in the completion message does not exceed the amount approved by the issuer.
Merchandise Return—A merchandise return transaction permits a merchant to credit the
account of a cardholder who returns merchandise for the entire or partial amount.

Balance Inquiry—A balance inquiry allows a cardholder to check his or her account balance
at an ATM, at a stand-alone merchant terminal away from the point of sale, and at the point
of sale or point of service.

Address Verication Only—This transaction is used by Visa merchants such as direct

marketing rms and airlines to verify a cardholder’s address before submitting a purchase
transaction.

A.2 MERCHANT-AUTHORIZED TRANSACTIONS

Store-and-forward transactions and Interlink-only paper sales draft transactions are used by
merchants by prior arrangement with the acquirer when the merchant systems are down or are
unable to communicate with the acquirer. These transactions must be processed within nine
(9) calendar days following the date of the original transaction. Neither the issuer nor Visa
is liable for any losses resulting from merchant-authorized transactions, nor is the merchant
guaranteed payment for them.

Store-and-Forward (Interlink and POS Check Service only)—Store-and-forward

transactions are completed purchase and merchandise credit transactions that are created
and retained by the merchant system when it is not able to submit nancial transactions
for approval. Later, when the merchant system is back online, the merchant sends the
store-and-forward transactions to VisaNet for delivery to the issuers for approval.
NOTE
Merchandise credits are not allowed for the POS Check Service.

Paper Sales Draft (Interlink only)—Paper sales draft transactions can be used by merchants
when temporary problems occur at the POS terminal or the PIN pad. For this transaction,
Transaction Types

the merchant obtains the cardholder’s signature on the paper sales draft and veries the
cardholder’s identity. Later, the merchant forwards the paper sales drafts to the acquirers for
conversion to electronic form. The acquirers then submit the electronic sales draft transactions
online through VisaNet to the issuers for approval.

Resubmission (Interlink and POS Check Service only)—A resubmission is used by Interlink
or POS Check acquirers to resubmit a nancial transaction (such as an original purchase or a
store-and-forward transaction, or a paper sales draft for Interlink) that was declined because
of insufcient funds or because the transaction would have caused daily activity limits to be
exceeded.

A-4 Visa *Condential* V.I.P. System Overview 1 June 2005

 Appendix A System-Generated Transactions

EXAMPLE
For instance, a merchant may choose to complete a declined transaction for a regular customer, even though
the issuer declined the transaction because of daily limits, with the expectation that the transaction will be
approved when the merchant resubmits it the next day.

Acquirers can resubmit transactions once a day for nine (9) calendar days following the date
of the cardholder’s transaction (not the date of the denial). After nine days, V.I.P. rejects
further resubmission attempts.

A.3 SYSTEM-GENERATED TRANSACTIONS

There are two types of system-generated transactions:

Reversal—A reversal transaction is used to reverse an approved authorization, a

preauthorization, or a nancial transaction that was not completed due to a system malfunction
or because the transaction timed out. Financial transactions are cash disbursements,
purchases (all variations), merchandise credits, store-and-forward transactions, paper sales
draft transactions, and resubmissions. (Deferred clearing purchases and below-oor-limit
purchases cannot be reversed.) A reversal transaction can be initiated by an ATM, by an
acquirer’s host system, or by V.I.P.

Cash Disbursement Adjustment—This transaction is a system-generated adjustment (debit

or credit) used by an ATM acquirer to adjust the value of a cash disbursement because of
an ATM misdispense or a late completion.

A.4 EXCEPTION TRANSACTIONS

The following transactions are used to correct errors that occur at the point of transaction or
in a participant’s system.

Adjustment—An acquirer creates an adjustment to an original transaction to correct an

error such as an out-of-balance condition at the point of sale. The adjustment may be either
a debit or a credit.

Good-Faith Collection (Interlink only)—An Interlink acquirer may use this variation of the
adjustment if the issuer agrees to accept a nancial transaction that cannot be processed
under Interlink rules, typically because time frames for exception processing have expired.

Chargeback—An issuer creates a chargeback when a cardholder disputes a transaction,

Transaction Types
when a cardholder asserts that merchandise was returned but a merchandise credit has not
been received by the issuer, when the issuer itself disputes a transaction, or when the issuer
receives an unpostable debit adjustment from an acquirer.

Chargeback Reversal—An issuer creates a chargeback reversal to cancel a prior chargeback

that was sent in error. This transaction is not used in the Interlink Service.

Representment—An acquirer creates a representment when the validity of a chargeback

can be disproved.

A.5 FEE-RELATED TRANSACTIONS

Fee-related transactions do not require authorization and may not be declined. There are two
types of fee-related transactions:

1 June 2005 Visa *Condential* V.I.P. System Overview A-5

 Appendix A Reconciliation Transactions

Fee Collection—This transaction is used to collect miscellaneous fees.

Funds Disbursement—This transaction is used to remit miscellaneous fees.

A.6 RECONCILIATION TRANSACTIONS

Members may use the optional reconciliation transaction to receive gross interchange totals
at the end of a processing day. SMS participants use these interchange totals to verify
processing totals. Participants can also initiate an online message at any time to receive the
previous day’s end-of-day totals.

A.7 FILE MAINTENANCE TRANSACTIONS

File maintenance transactions are used by issuers to update or to query Cardholder Database
les such as the exception le, the Address Verication File, or the PIN Verication File. See
the “Managing System Databases” section of Chapter 2, V.I.P. Transaction Processing, for more
information about the Cardholder Database les.

A.8 ADMINISTRATIVE TRANSACTIONS

Administrative messages, which are initiated by a participant’s operations staff, are used to
request or to convey information between the issuer and the acquirer. There are four types of
administrative messages:

Card Capture Notication—This transaction is used by a Plus acquirer to notify a Plus issuer
that a card has been captured when one of the participants is connected to Plus System, Inc.

Free Text Message—This transaction is used to provide or to request information of a general

nature for transactions.

Copy Request Message—Copy request messages are used to process requests for
documentation. These transactions are not used for ATM or Interlink transactions.

Online Fraud Reporting—These transactions are used by members to report, track, and
analyze fraudulent transactions.

A.9 NETWORK MANAGEMENT TRANSACTIONS

Network management transactions are used to perform the following functions:

Sign-On—The sign-on transaction is used by issuers and by acquirers to notify VisaNet that
they are available to send and to receive messages.
Transaction Types

Sign-Off—The sign-off transaction is used by issuers and by acquirers to notify VisaNet that
they are not available.

Recovery Sign-On—This transaction is used by issuers and by acquirers to request delivery

of advice messages by signing on to Advice Recovery mode.

Recovery Sign-Off—This transaction is used by issuers and by acquirers to indicate that they
do not want to receive further advice messages and are signing off from Advice Recovery mode.

Reconciliation Request—This request is used optionally by issuers and by acquirers to

request gross interchange totals.

Echo Test—An echo test is used by issuers, by acquirers, and by V.I.P. to conrm the
availability of the communications link between the member host system and VisaNet.

A-6 Visa *Condential* V.I.P. System Overview 1 June 2005

 Appendix A Network Management Transactions

Dynamic Key Exchange—This transaction is used optionally by issuers, by acquirers, and by

V.I.P. to update working keys online.

For additional information about V.I.P. transactions, refer to V.I.P. System BASE I Processing
Specications and to the V.I.P. System SMS processing specications manuals.

Transaction Types

1 June 2005 Visa *Condential* V.I.P. System Overview A-7

 THIS PAGE INTENTIONALLY LEFT BLANK.
Transaction Types

A-8 Visa *Condential* V.I.P. System Overview 1 June 2005

 X Index

A services
Account Verication Service 3-9 Account Verication Service 3-9
acquirer responsibilities Address Verication Service (AVS) 3-9
establishing follow-up procedures 4-5 ATM Format Conversion Service 3-9
establishing Merchant Central File policies 4-5 availability 3-13
establishing POS connection 4-3 BASE I Advice Retrieval Service 3-9
establishing response procedures 4-4 Card Verication Value (CVV) Service 3-10
processing options, Card Recovery Bulletins 3-5 Card Verication Value 2 (CVV2)
providing PIN security 4-4 Service 3-10
Address Verication Service (AVS) 3-9 Cardholder Authentication Verication
adjustment Value (CAVV) Verication Service 3-10
cash disbursement transaction A-5 Custom Payment Service (CPS)/ATM 3-10
administrative Custom Payment Service (CPS)/POS 3-10
messages 2-9 Deferred Clearing Advice File (DCAF)
transactions A-6 Service 3-11
advice le Dynamic Key Exchange (DKE) Service 3-11
BASE I 3-9 Full Authorization Service 3-11
SMS 3-9 International Automated Referral Service
advice recovery 2-6, 2-9, 4-2 (IARS) 3-11
Assured Transaction Response (ATR) 2-8 Multicurrency Service 3-12
ATM cash disbursement A-2 PIN Verication Service (PVS) 3-12
ATM Format Conversion Service 3-9 POS Check Service 3-12
ATM Processing Integration 3-15 Positive Authorization Capacity
ATM/POS Split Routing Service 3-3 Management (PACM) Service 2-5, 3-12
ATR, See Assured Transaction Response (ATR) Positive Cardholder Authorization Service
authorization (PCAS) 2-5, 3-12
denition of 1-1 SMS Advice Retrieval Service 3-9
issuer responsibilities 4-6 Status Check Service 3-13
request A-2 VisaPhone Service 3-13
authorization database services
Automatic Cardholder Database Update
(Auto-CDB) Service 3-8
availability 3-8
Merchant Central File Service (MCFS) 3-8
Automatic Cardholder Database Update
Index

(Auto-CDB) Service 3-8

AVS, See Address Verication Service (AVS)

B
balance inquiry A-4
BASE I Advice Retrieval Service 3-9
BASE I System
description of 1-6
overview 1-6

1 June 2005 Visa *Condential* V.I.P. System Overview IX-1

 X Index

reports 2-12 D
stand-in processing (STIP) 2-6 to 2-7 DCAF, See Deferred Clearing Advice File (DCAF)
BASE II System 1-7 Service
billing 2-12 deferred clearing
denition of 1-2
C purchase A-3
card capture notication A-6 Deferred Clearing Advice File (DCAF)
Card Recovery Bulletin (CRB) Service 3-5 Service 3-11
Card Verication Value (CVV) deposit access products
result code processing 2-8 comparison of 1-3
Card Verication Value (CVV) Service 3-10 Plus 1-3
Card Verication Value 2 (CVV2) Service 3-10 Visa Debit 1-2
Cardholder Authentication Verication Value Visa Electron 1-2
(CAVV) Verication Service 3-10 Visa Horizon 1-2
Cardholder Database Visa Interlink 1-2
advice le—BASE I 3-9 dual-message transaction, denition of 1-2
advice le—SMS 3-9 dynamic key exchange A-7
description of 2-10 Dynamic Key Exchange (DKE) Service 3-11
issuer responsibilities 4-6
cardholder transactions A-2 E
CAVV Service, See Cardholder Authentication echo test A-6
Verication Value (CAVV) Verication Service establishing POS connection 4-3
certication 4-2 exception le
Chargeback Reduction Service (CRS) 3-14 automatic updating 2-11
Check Acceptance Service 3-3 description of 2-10
chip card services exception transactions A-5
availability 3-7
Visa Horizon Service 3-7
F
clearing
fee-related transactions
denition of 1-11
A-5
clearing, denition of 1-1
le
CMI, See Common Member Interface (CMI)
maintenance transactions
Common Member Interface (CMI)
A-6
overview 1-9
les
processes 1-9
advice le—BASE I 3-9
copy request A-6
advice le—SMS 3-9
CPS, See Custom Payment Service (CPS)
nancial transactions, types of A-1
CRS, See Chargeback Reduction Service (CRS)
Fraud Reporting System (FRS) 3-6
Custom Payment Service (CPS)/ATM 3-10
free text message A-6
Custom Payment Service (CPS)/POS 3-10
Index

Full Authorization Service 2-11, 3-11

CVV, See Card Verication Value (CVV)
CVV (card verication value)
in STIP 2-8 G
CVV Service, See Card Verication Value (CVV) Gateway Services 3-3
Service good-faith collection A-5
CVV2 Service, See Card Verication Value 2
(CVV2) Service I
Integrated Debit Service 3-3

IX-2 Visa *Condential* V.I.P. System Overview 1 June 2005

 X Index

International Automated Referral Service message ows

(IARS) 3-11 normal processing
issuer processing options, Card Recovery administrative transactions A-6
Bulletins 3-5 le maintenance transactions A-6
issuer responsibilities merchant-authorized transactions A-4
establishing authorization policies 4-6 network management transactions A-6
establishing Cardholder Database le reconciliation transactions A-6
policies 4-6 system-generated transactions A-5
establishing follow-up procedures 4-7 Multicurrency Service 3-12
establishing response procedures 4-7
managing processing parameters 4-7 N
providing PIN security 4-6
network management 2-9, 4-2
network management transactions A-6
L network stations 4-1
linking related messages 2-4 normal processing
logging, VisaNet Integrated Payment (V.I.P.) administrative transactions
System 2-8 A-6
le maintenance transactions
M A-6
merchant-authorized transactions A-4
manual cash disbursement A-2
network management transactions
matching messages 2-4
A-6
MCFS, See Merchant Central File Service (MCFS)
system-generated transactions A-5
Merchant Central File
acquirer responsibilities 4-5
description of 2-11 O
Merchant Central File Service (MCFS) 3-8 online deferred clearing, denition of 1-2
merchant-authorized transactions online fraud reporting transaction A-6
paper sales draft A-4
resubmission A-4 P
store-and-forward A-4
PACM. See Positive Authorization Capacity
message
Management Service 3-12
bit map 2-3
paper sales draft
data elds 2-3
transaction A-4
editing 2-2
parameters
formats 1-12, 2-2
issuer managing 4-7
header 2-3
stand-in processing (STIP) 2-6
response processing 2-8, 4-4, 4-7
V.I.P. 1-11
sets 2-4
PCAS, See Positive Cardholder Authorization
support 4-1
Index

Service (PCAS)
type identier 2-3
PIN security 4-4, 4-6
V.I.P. structure 2-3
PIN Verication Service 2-11
PIN Verication Service (PVS) 3-12
PIN/No-PIN Split Routing Service 3-4
POS Check Service 3-12
POS connection, setting up 4-3
Positive Authorization Capacity Management
(PACM) Service 3-12

1 June 2005 Visa *Condential* V.I.P. System Overview IX-3

 X Index

Positive Cardholder Authorization Service representment A-5

(PCAS) 3-12 resubmission transaction A-4
PPCS, See Preauthorized Payment Cancellation reversal
Service (PPCS) transaction
Preauthorization A-4 system-generated A-5
Preauthorized Payment Cancellation Service risk management services
(PPCS) 3-13 availability 3-6
Priority Routing Service 3-4 Card Recovery Bulletin (CRB) Service 3-5
processing Fraud Reporting System (FRS) 3-6
BASE I 1-6 routing
BASE II 1-7 alternatives 2-5
Common Member Interface (CMI) 1-9 denition of 2-4
networks 1-1 information
parameters stand-in processing (STIP) 2-6
issuer responsibilities 4-7 system tables 2-4
stand-in processing (STIP) 2-6 internal services 2-5
V.I.P. 1-11 services
Single Message System (SMS) 1-6 ATM/POS Split Routing Service 3-3
VisaNet Settlement Service (VSS) 1-10 availability 3-5
processing center Check Acceptance Service 3-3
certication 4-2 Gateway Services 3-3
description of 1-4 Integrated Debit Service 3-3
establishing 4-1 PIN/No-PIN Split Routing Service 3-4
network management 4-2 Priority Routing Service 3-4
requirements Visa Shortest Online Path (VSOP)
acquirer 4-3, 4-5 Service 3-4
issuer 4-5, 4-8 tables 2-4
testing 4-2
processing ow, transaction 2-1 S
purchase
Scrip A-3
below-oor-limit A-3
services
bill payment A-3
Preauthorized Payment Cancellation Service
incremental authorization A-3
(PPCS) 3-13
key-entered A-3
VisaNet Cashback Service 3-13
proximity payment A-3
settlement
recurring payment A-3
denition of 1-11
with address verication A-3
settlement entity, denition of 4-3
with cashback A-3
settlement, denition of 1-1
SI mode 4-2
Q sign on / sign off 4-2
Index

quasi-cash A-3 sign on and sign off 2-9

Single Message System (SMS)
description of 1-6
R
overview 1-6
raw data records 2-12
reconciliation requirements 4-2
reconciliation transactions A-6
stand-in processing (STIP) 2-7
reports
single-message transaction, denition of 1-2
BASE I 2-12
SMS, See Single Message System (SMS)

IX-4 Visa *Condential* V.I.P. System Overview 1 June 2005

 X Index

SMS Advice Retrieval Service 3-9 reconciliation A-6

stand-in processing (STIP) resubmission A-4
through V.I.P. reversal
BASE I 2-6 to 2-7 system-generated A-5
parameters 2-6 store-and-forward A-4
Single Message System (SMS) 2-7
Status Check Service 3-13 V
STIP, See stand-in processing (STIP)
V.I.P., See VisaNet Integrated Payment (V.I.P.)
store-and-forward
System
transaction A-4
VAP, See VisaNet Access Point (VAP)
Suppress Inquiry (SI) mode 2-9
VDPS, See VisaNet Distributed Processing System
system databases
(VDPS)
Cardholder Database les 2-10
VIC, See VisaNet Interchange Center (VIC)
managing 2-9
Visa check card II 3-15
Merchant Central File 2-10
Visa Horizon Service 3-7
system globals, See system tables
Visa Issuer Fraud Detection (VIFD) Service
system parameters, See processing, parameters
VIFD 3-1
system tables 2-9
Visa Secure Electronic Commerce (VSEC)
routing 2-4
services
system-generated transaction
availability 3-7
reversal A-5
Visa Shortest Online Path (VSOP) Service 3-4
Visa Smart Debit/Smart Credit (VSDC)
T Service 3-7
test messages 2-9, 4-2 VisaNet
testing 4-2 BASE II System 1-7
transaction ow 2-1 components 1-1, 1-3
transaction processing systems 1-5
authorization 1-1 transaction processing 1-5
clearing 1-1 V.I.P. processing parameters 1-11
dual message 1-2 VisaNet Access Point (VAP)
illustration of ow 2-1 description of 1-4
illustration of systems 1-5 network stations 4-1
online deferred clearing 1-2 VisaNet Cashback Service 3-13
settlement 1-1 VisaNet Distributed Processing System (VDPS)
single message 1-2 description of 1-8
transaction tracing 2-4 VisaNet Integrated Payment (V.I.P.) System
transaction types backup 1-4
administrative A-6 billing 2-12
cardholder A-2 Common Member Interface (CMI)
Index

exception A-5 illustration of 1-9

fee-related components
A-5 BASE I System 1-6
le maintenance Common Member Interface (CMI) 1-9
A-6 Single Message System (SMS) 1-6
list of A-1 logging 2-8
merchant-authorized A-4 overview 1-5
network management A-6 processing
paper sales draft A-4 parameters 1-11

1 June 2005 Visa *Condential* V.I.P. System Overview IX-5

 X Index

reports 2-11 illustration of 1-11

services, listed by functional group 3-1 reports 2-12
VisaNet Settlement Service (VSS) 1-10 VisaPhone Service 2-11, 3-13
VisaNet Interchange Center (VIC), description VSEC. See Visa Secure Electronic
of 1-3 Commerce 3-6
VisaNet Settlement Service (VSS) VSOP, See Visa Shortest Online Path (VSOP)
considerations 4-3 Service
denition 1-10 VSS, See VisaNet Settlement Service (VSS)
Index

IX-6 Visa *Condential* V.I.P. System Overview 1 June 2005